Which of the Following Will Result If the Current Year's

question 18

Multiple Choice

Which of the following will result if the current year's ending inventory amount is understated in the cost of goods sold calculation?

• A) Cost of goods sold will be overstated.
• B) Total assets will be overstated.
• C) Net income will be overstated.
• D) Both cost of goods sold and net income will be overstated.

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Definitions:

Critical Thinking

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

Frontal Lobes

The front portion of the brain involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Hemiparesis

A condition of weakness or partial paralysis affecting only one side of the body.

Hemiplegia

Paralysis of one side of the body, often resulting from a stroke or brain injury.