An Understatement of the Ending Inventory Balance Will Cause

question 218

Multiple Choice

An understatement of the ending inventory balance will cause:

• A)Cost of goods sold to be overstated and net income to be understated.
• B)Cost of goods sold to be overstated and net income to be overstated.
• C)Cost of goods sold to be understated and net income to be overstated.
• D)Cost of goods sold to be overstated and net income to be correct.

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Definitions:

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