If the Ending Inventory Balance Was Overstated on the Financial

question 73

Multiple Choice

If the ending inventory balance was overstated on the financial statements and the beginning inventory balance was understated, but all other items were properly reported, the calculated inventory turnover ratio would be:

• A)unaffected by these errors.
• B)too low.
• C)too high.
• D)indeterminable with the information given.