At an Organization That Uses a Periodic Inventory System, the Accountant

question 188

Multiple Choice

At an organization that uses a periodic inventory system, the accountant accidentally understated the organization's beginning inventory. How would the accountant's accident impact the income statement?

• A) Cost of goods sold will be understated and net income will be overstated.
• B) Cost of goods sold will be overstated and net income will be understated.
• C) Cost of goods sold will be understated and there will be no impact on net income.
• D) There will be no impact on cost of goods sold and net income will be overstated.