What is the effect on the Cost of Goods Sold account when the Inventory account is overstated?
a. It is overstated.
b. It is not affected.
c. It is increased disproportionately.
d. It is understated.
d
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.
You might also like to view...
Buyers, divisional merchandise managers, and general merchandise managers are some of those who undertake the responsibilities of merchandise management.
Answer the following statement true (T) or false (F)
A $190 credit item is posted as a debit. The trial balance column totals therefore will differ by
a. $380. b. $760. c. $190. d. $0.
It is inappropriate for a salesperson to provide information to his/her company on such topics as competitors' activities and market opportunities since doing so would exceed his/her authority and violate customer confidence.
Answer the following statement true (T) or false (F)
Partner A purchases Partner B's $3,000 interest from Partner B for $5,000. The entry to record the transaction is for $3,000
Indicate whether the statement is true or false