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

question 32

Multiple Choice

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

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