An Overstatement of Ending Inventory in a Period Will Result

question 139

True/False

An overstatement of ending inventory in a period will result in an understatement of gross margin in that period.

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Definitions:

Validity

The extent to which a test or instrument accurately measures what it is intended to measure.

Instrument Used

Refers to the specific tool or device employed in a study, experiment, or assessment to collect data or measure variables.

Validity Evidence

Information or data that supports the accuracy and appropriateness of the inferences made from test scores or other assessment outcomes.

Accumulated Validity

The overall demonstration of a test's validity, based on the aggregation of evidence from multiple studies and sources over time.