The Ending Merchandise Inventory for the Current Year Is Overstated

question 68

Multiple Choice

The ending merchandise inventory for the current year is overstated by $25,000.What effect will this error have on the following year's net income?

• A) The net income will be overstated by $50,000.
• B) The net income will be overstated by $25,000.
• C) The net income will be understated by $25,000.
• D) The net income will be understated by $50,000.

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Definitions:

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