Assume That Ending Inventory in Fiscal 2012 Is Overstated by $1,000.What

question 122

Multiple Choice

Assume that ending inventory in fiscal 2012 is overstated by $1,000.What impact will this have on fiscal 2013 financial reporting?

• A)Retained earnings is overstated by $1,000.
• B)Retained earnings is understated by $1,000.
• C)The retained earnings will be correctly stated.
• D)Inventory is understated on the balance sheet.

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