An Overstated Beginning Inventory Will ________ Cost of Goods Sold

question 53

Short Answer

An overstated beginning inventory will ________ cost of goods sold and ________ net income.

---

Definitions:

Budgeted Sales

The projected amount of sales, in units or dollars, that a company expects to achieve during a specific period.

Credit Sales

Sales in which the customer is allowed to pay for the goods or services at a later date, rather than at the time of purchase.

Raw Materials Purchases

The total cost of all components bought for use in the production process of goods.

Cash Disbursements

Outgoing payments made by a business, often documented in a cash disbursement journal, including expenses, creditor payments, and other financial outflows.