If Ending Inventory Is Understated for Year 1,then in Year

question 99

Multiple Choice

If ending inventory is understated for Year 1,then in Year 2:

• A)cost of goods sold and gross profit will both be understated.
• B)cost of goods sold and gross profit will both be overstated.
• C)cost of goods sold will be overstated and gross profit will be understated.
• D)cost of goods sold will be understated and gross profit will be overstated.

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