If Ending Inventory Is Understated for Year 1,then in Year

question 99

Multiple Choice

If ending inventory is understated for Year 1,then in Year 2:

• A)cost of goods sold and gross profit will both be understated.
• B)cost of goods sold and gross profit will both be overstated.
• C)cost of goods sold will be overstated and gross profit will be understated.
• D)cost of goods sold will be understated and gross profit will be overstated.

---

Definitions:

Scholarly Works

Academic publications including articles, books, and papers reflecting research, studies, or analysis in various fields.

Legally Binding

An agreement or contract that is enforceable by law, meaning all parties involved must abide by the terms.

Primary Sources

Original documents or legal texts that provide direct evidence or first-hand testimony of a topic or event.

Legal Encyclopedias

Comprehensive reference works that provide summaries on a wide range of legal topics, often used by legal professionals for research.