If closing inventory is accounted for as 240,000 instead of 180,000: (a) Gross profit and net profit

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If closing inventory is accounted for as £240,000 instead of £180,000:
(a) Gross profit and net profit would both be understated
(b) Gross profit will be exaggerated and net profit understated
(c) Gross profit will be overstated but net profit correctly reported
(d) Gross profit as well as net profit will be overstated

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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