If the Ending Inventory Is Overstated in the Current Year

question 68

Multiple Choice

If the ending inventory is overstated in the current year:

• A)Net income will be understated in the current year.
• B)Next year's beginning inventory will also be overstated.
• C)Next year's net income will be overstated.
• D)Next year's beginning inventory will be understated.

---

Definitions:

Congestive Heart Failure

A chronic condition in which the heart is unable to pump blood effectively, leading to symptoms like shortness of breath and swelling in legs.

Leukemia

A type of cancer of the blood or bone marrow characterized by an abnormal increase in white blood cells.

Skeletal

Pertaining to the skeleton or bony structure; also to the muscles attached to the skeleton to permit movement.

Congestive Heart Failure

A condition where the heart's function as a pump is inadequate, leading to the buildup of fluid in the body.