[Solved] If a company understates in ending invent

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If a company understates in ending inventory in the current period, what effect will this have on the balance of Retained Earnings at the end

If a company understates in ending inventory in the current period, what effect will this have on the balance of Retained Earnings at the end of the following period?

A.Overstate retained earnings.

B.Understate retained earnings.

C.Have no effect on retained earnings.

D.Not possible to determine with information given.

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