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If the ending inventory is overstated, what is the effect on net income? a) Net income is overstated b) Net income is understated c) Net income is not affected d) Net income is reduced

If the ending inventory is overstated, what is the effect on net income? a) Net income is overstated b) Net income is understated c) Net income is not affected d) Net income is reduced

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.23E: The Effect of Ignoring Adjusting Entries on Net Income For each of the following independent...
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If the ending inventory is overstated, what is the effect on net income? a) Net income is overstated b) Net income is understated c) Net income is not affected d) Net income is reduced
Transcribed Image Text:If the ending inventory is overstated, what is the effect on net income? a) Net income is overstated b) Net income is understated c) Net income is not affected d) Net income is reduced
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