An Understatement of Ending Inventory in One Period Results in

question 100

Multiple Choice

An understatement of ending inventory in one period results in

• A)an overstatement of the ending inventory of the next period.
• B)an understatement of gross margin of the next period.
• C)an overstatement of gross margin of the next period.
• D)no effect on gross margin of the next period.

---

Definitions:

Assert Comparisons

Making statements that establish similarities or differences between two or more items.

Comparative Reasoning

A type of reasoning that involves comparing different cases or examples to draw conclusions.

Harvest Wheat

The process of gathering ripe wheat crops from the fields, which involves cutting, bundling, threshing, and preparing the wheat for consumption or sale.

Legal Precedent

A legal case that establishes a principle or rule that a court or other judicial body utilizes when deciding subsequent cases with similar issues or facts.