Which of the Following Is Correct When,in the Same Year,beginning

question 120

Multiple Choice

Which of the following is correct when,in the same year,beginning inventory is overstated by $1,300 and ending inventory is understated by $700?

• A)Net income is understated by $600.
• B)Net income is understated by $2,000.
• C)Net income is overstated by $600.
• D)Net income is overstated by $2,000.

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Definitions:

Selling Price

The amount for which a product or service is sold to a customer.

Accurate

Free from errors or mistakes; precise and correct in details.

Cent

The smallest denomination of many currencies, representing 1/100th of the currency's main unit.

Percent

A ratio or fraction calculated out of 100, used to indicate portions of a whole.