If the ending inventory is overstated by $10,000, which statement is true?a. Assets and Cost of Goods Sold are overstated.b. Assets and Cost of Goods Sold are understated.c. Assets and Net Income are overstated.d. Assets and Net Income are understated.

The correct answer is:c. Assets and Net Income are overstated. Explanation:Ending Inventory…

Answered: If the ending inventory is 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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If the ending inventory is overstated by $10,000, which statement is true? a. Assets and Cost of Goods Sold are overstated. b. Assets and Cost of Goods Sold are understated. c. Assets and Net Income are overstated. d. Assets and Net Income are understated.