If purchases are overstated by $1,000 and ending inventory is overstated by $4,000, then net income will be: overstated by $1,000 overstated by $3,000 overstated by $5,000 understated by $4,000 T or F: Company A has CCC of 5 while Company B has CCC of 10. I'd argue that Company B has superior balance sheet management than Company A since B has higher CCC (all else equal). Under the accrual basis of accounting, which of the following statements is/are true? Reported income provides a measure of the firm's current operating performance Revenue is recognized when cash is received Cash flows may be allocated to time periods other than those in which they occur I only II only I and III only I, II, and