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:

Value-Laden

Describes concepts, arguments, or statements that are influenced by personal values, biases, or cultural norms, often implying a lack of objectivity.

Inductive Logic

A method of reasoning in which general principles are derived from specific observations.

Deductive Logic

Deductive logic is a method of reasoning from one or more statements (premises) to reach a logically certain conclusion, operating from the general to the specific.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.