The Understatement of the Beginning Inventory Balance Causes

question 67

Multiple Choice

The understatement of the beginning inventory balance causes:

• A) Cost of goods sold to be understated and net income to be understated.
• B) Cost of goods sold to be understated and net income to be overstated.
• C) Cost of goods sold to be overstated and net income to be overstated.
• D) Cost of goods sold to be overstated and net income to be understated.
• E) Cost of goods sold to be overstated and net income to be correct.

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Definitions:

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Antisocial

Behaviors that go against social norms and can harm or lack consideration for the well-being of others.

Hurtful Behavior

Actions or words that cause distress or pain to another person, whether intentional or unintentional.

Intent

The purpose or objective behind someone's actions or a particular design.