If a Company Overstates Its Ending Inventory for the Current

question 55

Multiple Choice

If a company overstates its ending inventory for the current year,what are the effects on cost of goods sold and net income for the current year? Effect on Effect on
Cost of Goods Sold Net Income

• A)Understated Overstated
• B)Overstated No effect
• C)Understated Understated
• D)Overstated Overstated

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Dick Cheney

A prominent American politician who served as Vice President of the United States from 2001 to 2009 under President George W. Bush.

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