West Corporation's 2015 Ending Inventory Was Overstated by $20,000;however,ending Inventory

question 124

Multiple Choice

West Corporation's 2015 ending inventory was overstated by $20,000;however,ending inventory for 2016 was correct.Which of the following statements is correct?

• A)Net income for 2015 is understated.
• B)Retained earnings at the end of 2016 is overstated.
• C)Cost of goods sold for 2015 is overstated.
• D)Cost of goods sold for 2016 is overstated.

---

Definitions:

Mescaline

A hallucinogenic drug derived from certain cacti, notably the peyote cactus.

Stimulants

Drugs that speed up activity in the central nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Speed Up

The act of increasing the rate at which something occurs or is performed.