An Overstated Beginning Inventory Will ________ Cost of Goods Sold

question 53

Short Answer

An overstated beginning inventory will ________ cost of goods sold and ________ net income.

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Definitions:

Accounts Payable

The amount of money that a company owes to its suppliers or vendors for goods and services received but not yet paid for.

Internal Audit

A department within an organization tasked with evaluating and improving the effectiveness of risk management, control, and governance processes.

Approved Vendor List

A list of suppliers that a company has vetted and approved for purchasing specific goods or services.

Bona Fide Claim

A claim that is made in good faith without deception or fraud.