Fran Company's ending inventory is under- stated by $4,000. The effects of this error on the current

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Fran Company's ending inventory is under- stated by $4,000. The effects of this error on the current year's cost of goods sold and net in- come, respectively, are:

(a) understated and overstated.

(b) overstated and understated.

(c) overstated and overstated.

(d) understated and under- stated.

AppendixLO1

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471691952

3rd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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