Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error
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Assuming a company’s year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts.
A. Income Statement: Cost of Goods Sold
B. Income Statement: Net Income
C. Balance Sheet: Assets
D. Balance Sheet: Liabilities
E. Balance Sheet: Equity
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Impact of overstating inventory A Answer Cost of goods sold become lower Explanation When year end i...View the full answer
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Related Book For 
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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