Question
If a company overstates its ending balance of inventory in 20X1 and it records inventory correctly in year 20X2, which one of the following is
If a company overstates its ending balance of inventory in 20X1 and it records inventory correctly in year 20X2, which one of the following is true?
rev: 05_08_2020_QC_CS-211918, 10_13_2020_QC_CS-234810
Multiple Choice
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Net income is overstated in 20X2.
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Cost of goods sold is overstated in 20X1.
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Net income is understated in 20X1.
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Retained earnings is overstated in 20X1.
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Finance The Basics
Authors: Erik Banks
3rd Edition
1138919780, 9781138919785
