Suppose That Hastings Corporation Overstates Its Ending Inventory for 2015

question 128

Multiple Choice

Suppose that Hastings Corporation overstates its ending inventory for 2015.What effect will this have on the reported amount of cost of goods sold for 2015?

• A)Overstate cost of goods sold.
• B)Understate cost of goods sold.
• C)Have no effect on cost of goods sold.
• D)Cannot be determined given the information provided.

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Definitions:

Sibling

A person's brother or sister; an individual who shares at least one parent with another individual.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted and repetitive behavior, interests, or activities.

Deficient Communication

Ineffective or insufficient exchange of information between individuals or groups, often leading to misunderstandings.

Repetitive Behaviors

Actions that are performed again and again, often a symptom of neurological disorders.