An Overstatement of Ending Inventory Results in Which of the Following

question 134

Multiple Choice

An overstatement of ending inventory results in which of the following in the present period?

• A)Overstatement of cost of goods sold.
• B)Overstatement of total assets.
• C)Understatement of net income.
• D)Understatement of retained earnings.

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Definitions:

Selective Listening

The process of hearing and focusing on certain parts of a message while ignoring others, often based on bias or preconception.

Passive Listening

A listening style where the listener does not actively engage with the speaker, often resulting in a lack of understanding or retention of the information.

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Evaluating

The process of assessing or examining something with the possibility or intention of instituting change if necessary.