Zirkle Company Understated Its Ending Inventory

question 102

Multiple Choice

Zirkle Company understated its ending inventory.Which of the following answers correctly states the effect of the error in the present period?

• A)Overstatement of total assets and cost of goods sold.
• B)Overstatement of cost of goods sold and retained earnings.
• C)Understatement of liabilities and retained earnings.
• D)Understatement of total assets and gross margin.

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Definitions:

Scrotal Sac

The pouch of skin that contains and protects the testicles, as well as regulates their temperature for proper sperm development.

Testosterone

A primary male sex hormone responsible for the development of male secondary sexual characteristics, also playing a role in muscle and bone mass.

Fertility

The natural capability to produce offspring, a measure of reproduction rate for an individual or population.

Parturition

The act or process of giving birth; childbirth.