Question
How will a $25,000 understatement of ending inventory in one year affect the liabilities of the company in both the current and subsequent years? :
How will a $25,000 understatement of ending inventory in one year affect the liabilities of the company in both the current and subsequent years?
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:
It will result in a $25,000 understatement of liabilities in the current year and a $25,000 overstatement in the subsequent year.
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B :
It will have no impact on liabilities in either the current or subsequent years.
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C :
It will have no impact on liabilities in the current year and result in a $25,000 understatement in the subsequent year.
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D :
It will result in a $25,000 understatement of liabilities in the current year and have no impact in the subsequent year.
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