3 Under a periodic inventory system, if the beginning inventory is overstated Select one: a. working capital is understated. b. the current ratio is overstated. c. net income is understated. d. cost of goods sold is understated.

3 Under a periodic inventory system, if the beginning inventory is overstated Select one: a. working capital is understated. b. the current ratio is overstated. c. net income is understated. d. cost of goods sold is understated.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13DQ: What does an increase in inventory imply? How would this increase in inventory be reported under the...

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Question

Under a periodic inventory system, if the beginning inventory is overstated

Select one:

a. working capital is understated.

b. the current ratio is overstated.

c. net income is understated.

d. cost of goods sold is understated.

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