An Overstatement of Ending Inventory Will Cause

question 4

Multiple Choice

An overstatement of ending inventory will cause

• A) An overstatement of assets and equity on the balance sheet.
• B) An understatement of assets and equity on the balance sheet.
• C) An overstatement of assets and an understatement of equity on the balance sheet.
• D) An understatement of assets and an overstatement of equity on the balance sheet.
• E) No effect on the balance sheet.

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