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 2TF: An understatement of ending inventory in the year 20-1 will cause net income to be overstated in the...

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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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