An Overstatement of Ending Inventory in One Period Results in

question 142

Multiple Choice

An overstatement of ending inventory in one period results in

• A) an overstatement of the ending inventory of the next period.
• B) an understatement of gross margin of the next period.
• C) an overstatement of gross margin of the next period.
• D) no effect on gross margin of the next period.

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Definitions:

Articles Of Confederation

First frame of government for the United States; in effect from 1781 to 1788, it provided for a weak central authority and was soon replaced by the Constitution.

Indebted Farmer

An agricultural worker or landowner who owes money, typically as a result of borrowing to finance farming operations or land purchase.

Revolutionary War

A war fought from 1775 to 1783 in which the American colonies successfully gained independence from Great Britain, becoming the United States of America.