Which of the Following 2011 Financial Statement Line Items Will

question 62

Multiple Choice

Which of the following 2011 financial statement line items will be affected if the 2011 ending inventory balance is overstated?

• A)Cost of goods sold will be understated.
• B)Current assets will be understated.
• C)Net income will be understated.
• D)Current liabilities will be overstated.

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Definitions:

Trochlea

A grooved structure in the body, especially a pulley-like part at the upper end of the ulna where it articulates with the humerus at the elbow joint.

Infraspinatus

A muscle located on the back of the shoulder blade that helps with the rotation and stabilization of the shoulder joint.

Deltoid

A large, triangular muscle covering the shoulder joint that is responsible for lifting the arm and giving the shoulder its range of motion.

Muscle Fibers

The cells of muscles that contract to produce movement, consisting of myofibrils, which are themselves composed of sarcomeres, the basic unit of muscle contraction.