In a Periodic Inventory System, If Ending Inventory Is Understated

question 153

Multiple Choice

In a periodic inventory system, if ending inventory is understated,

• A) net income is understated.
• B) working capital is overstated.
• C) the current ratio is overstated.
• D) cost of goods sold is understated.

---

Definitions:

Entering Or Editing A Record

The process of adding new or modifying existing data in a database entry.

Close A Table

An operation in database management where a table is closed, ending access to its data until it is opened again.

Report Wizard

A tool within database and spreadsheet software that helps users create complex reports by guiding them through the selection of fields, data groupings, and layout options.

Modify The Report's Design

The process of changing the layout, structure, or visual appearance of a report in software applications to meet specific requirements or improve readability.