How Does Overstated Ending Inventory Leads to Overstated Earnings

question 83

Multiple Choice

How does overstated ending inventory leads to overstated earnings?

• A)By understating cost of good sold.
• B)By overstating cost of good sold.
• C)By understating contribution margin.
• D)By understating gross margin.

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Definitions:

Fixed-interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Negative Reinforcer

A stimulus whose removal or avoidance following a behavior increases the likelihood of that behavior being repeated in the future.

Increases

A process or action that causes something to become larger, more numerous, or more significant.

Decreases

The act or process of becoming smaller or fewer in size, amount, intensity, or degree.