A $15,000 Overstatement of the 20B Ending Inventory Was Discovered

question 23

Multiple Choice

A $15,000 overstatement of the 20B ending inventory was discovered after the financial statements for 20B were prepared.What was the effect of the inventory error on the 20B financial statements?

• A)Current assets were overstated and profit was understated.
• B)Current assets were understated and profit was understated.
• C)Current assets were understated and profit was overstated.
• D)Current assets were overstated and profit was overstated.

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Definitions:

Voip

Voice over Internet Protocol, a technology that allows voice communications and multimedia sessions over Internet Protocol networks, such as the internet.

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