Which Financial Statement Line Item Will Be Misstated If the 2011

question 81

Multiple Choice

Which financial statement line item will be misstated if the 2011 ending inventory balance is overstated?

• A)2011 Balance sheet only
• B)2011 and 2012 Balance sheets only
• C)2011 and 2012 Income statements and 2011 Balance sheet only
• D)2011 and 2012 Income statements only

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Definitions:

Dollar/Yen Market

The foreign exchange market involving the trading of US dollars and Japanese yen.

Appreciate

To increase in value or price, often in the context of financial investments or currency valuations.

Current Account Deficit

is a measurement of a country's trade where the value of the goods and services it imports exceeds the value of the products it exports.

Foreign Indebtedness

The total amount of debt a country owes to foreign creditors.