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.

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Definitions:

Reinforcement

A concept in behaviorism that refers to any event that strengthens or increases the likelihood of a behavior being repeated.

Fixed Number

A fixed number usually refers to a constant quantity or value that does not change in a given context, such as a fixed number of repetitions in an experiment.

Fixed-ratio Schedule

A schedule of reinforcement where a response is reinforced only after a specified number of responses have been made.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened or made more likely to occur again by rewarding it or providing a positive stimulus.