Answered: December 31, 2020, will be understated.…

December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31

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 1TF: An overstatement of ending inventory in the year 20-1 will cause net income to be overstated in the...

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Question

1. If ending inventory on December 31, 2019, is overstated, then,

a) cost of goods sold for the year ended December 31, 2020, will be understated.

b) gross profit for the year ended December 31, 2019, will be understated.

c) gross profit for the year ended December 31, 2020, will be understated.

d) cost of goods sold for the year ended December 31, 2019, will be overstated.

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