49. Which of the following will result if the current year's ending inventory amount is understated? a. Cost of goods sold will be understated b. Gross profit will be understated c. Net income will be overstated d. Retained earnings will be overstated

49. Which of the following will result if the current year's ending inventory amount is understated? a. Cost of goods sold will be understated b. Gross profit will be understated c. Net income will be overstated d. Retained earnings will be overstated

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...

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Question

49. Which of the following will result if the current year's ending inventory amount is
understated?
a. Cost of goods sold will be understated
b. Gross profit will be understated
C.
Net income will be overstated
d. Retained earnings will be overstated

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