If Cost of Goods Sold for the Year Was Overstated

question 30

Multiple Choice

If cost of goods sold for the year was overstated, but all other financial statement items were properly reported, the calculated inventory turnover ratio would:

• A)indicate the chance of running out of inventory was lower than it was.
• B)indicate the company was more profitable than it actually was.
• C)be unaffected by this error.
• D)indicate that inventory was being turned over more times than it was.

---

Definitions:

Dopamine Release

The process by which dopamine, a neurotransmitter associated with pleasure and reward, is released into the synaptic gap.

Runner's High

A euphoric condition experienced by some individuals after prolonged exercise, attributed to the release of endorphins into the brain.

Religious Ecstasy

An altered state of consciousness characterized by intense emotional experiences and a sense of spiritual connection, often associated with religious practices.

Automatic Processing

Unconscious encoding of information about space, time, frequency, and well-practiced tasks, requiring minimal cognitive effort.