The Ending Inventory for the Current Year Is Overstated by $20,000.What

question 59

Multiple Choice

The ending inventory for the current year is overstated by $20,000.What effect will this error have on the following year's Net profit?

• A)Net profit will be overstated by $40,000.
• B)Net profit will be understated by $20,000.
• C)Net profit will be overstated by $20,000.
• D)Net profit will be understated by $40,000.

---

Definitions:

Union Members

Individuals who belong to an organization that represents workers' interests, especially related to wages and working conditions.

Sick Leave

Paid or unpaid time off work granted by employers to employees due to illness or injury.