A Company Deliberately and Inappropriately Included Interest Costs in Its

Multiple Choice

A company deliberately and inappropriately included interest costs in its December 31 inventory. Which one of the following statements is true for the company's December 31 financial statements?

A) Earnings per share is understated.
B) Inventory turnover ratio is understated.
C) The current ratio is understated.
D) Cost of goods sold is overstated.