Assume That Ending Inventory in Fiscal 2016 Is Overstated by $1,000.What

question 13

Multiple Choice

Assume that ending inventory in fiscal 2016 is overstated by $1,000.What impact will this have on fiscal 2017 financial reporting?

• A)Retained earnings is overstated by $1,000.
• B)No effect on inventory value on the balance sheet.
• C)Retained earnings is understated by $1,000.
• D)Inventory is understated on the balance sheet.

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