Assume That Ending Inventory in Fiscal 2019 Is Overstated by $1,000.What

question 131

Multiple Choice

Assume that ending inventory in fiscal 2019 is overstated by $1,000.What impact will this have on fiscal 2020 financial reporting?

• A)Retained earnings is overstated by $1,000.
• B)Gross margin is understated by $1,000.
• C)Cost of sales is understated by $1,000.
• D)Inventory is understated on the balance sheet.

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