An Overstatement of Ending Inventory Will Cause

question 4

Multiple Choice

An overstatement of ending inventory will cause

• A) An overstatement of assets and equity on the balance sheet.
• B) An understatement of assets and equity on the balance sheet.
• C) An overstatement of assets and an understatement of equity on the balance sheet.
• D) An understatement of assets and an overstatement of equity on the balance sheet.
• E) No effect on the balance sheet.

---

Definitions:

National Convention

A meeting held every four years by political parties in the U.S. to nominate presidential and vice-presidential candidates.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was replaced by the U.S. Constitution in 1789 to form a stronger federal government.

Shays's Rebellion

A 1786-1787 uprising led by Daniel Shays and other Revolutionary War veterans in western Massachusetts, protesting against high taxes and economic injustices, which highlighted the need for a stronger national government.