Multiple Choice
If the gross margin percentage used in the gross margin method were overstated (e.g., 36% instead of 32%) , what would happen?
A) Cost of goods sold would be overstated.
B) Ending inventory would be understated.
C) Ending inventory would be overstated.
D) Ending inventory would be correctly stated, but beginning inventory would be incorrect.
Correct Answer:
Verified
Correct Answer:
Verified
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