If the Gross Margin Percentage Used in the Gross Margin

question 9

Multiple Choice

If the gross margin percentage used in the gross margin method were overstated (for example, 36% instead of 32%) , what would happen?

• A)Cost of goods sold would be overstated.
• B)Ending inventory would be understated.
• C)Ending inventory would be overstated.
• D)Ending inventory would be correctly stated, but beginning inventory would be incorrect.

---

Definitions:

Face-To-Face

Direct interaction or conversation between people in the same physical location.

Active Voice

A sentence construction where the subject of the sentence performs the action expressed by the verb, making the writing clearer and more direct.

Password

A secret word or phrase used to verify the identity of a user before granting access to a computer system or digital account.

Completing

The act of finishing or bringing a task or activity to a conclusion.