What is the procurement process?

A. A process in which a significant decline in payables as a percent of total assets may indicate completeness problems.

B. A process in which a significant increase in the current ratio compared to prior years' experience may indicate completeness problems.

C. A process that involves selecting vendors, establishing payment terms, negotiating contracts, purchasing goods, receiving goods, and recording of purchases and payment of liabilities.

D. The purchase returns process involving return of goods.

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If ending inventory is overstated, ________.

A. beginning inventory will be correctly valued

B. cost of goods sold will be understated

C. cost of goods sold will be overstated

D. the value of purchases will be understated