Which of the Following Statements Is Incorrect

question 82

Multiple Choice

Which of the following statements is incorrect?

• A)An increase in raw materials inventory means that raw materials purchases exceed raw materials used.
• B)An increase in work in process inventory means that costs put into work in process exceed cost of goods manufactured.
• C)A decrease in work in process inventory means that cost of goods sold exceed cost of goods manufactured.
• D)An increase in finished goods inventory means that cost of goods manufactured exceeds cost of goods sold.

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.

End-of-period Spreadsheets

Financial documents prepared at the end of an accounting period, summarizing the financial status and performance of a business.

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its overall revenue.

Net Loss

The amount by which total expenses exceed total revenues for a specific period, indicating a reduction in equity.