An understatement of ending inventory by $2 million in one period results ina. an overstatement of gross profit by $2 million in the next period.b. an understatement of gross profit by $2 million in the next period.c. no effect on net income of the next period.d. an overstatement of the beginning inventory by $2 million in the next period.

An understatement of ending inventory by $2 million in one period results ina. an overstatement of gross profit by $2 million in the next period.b. an understatement of gross profit by $2 million in the next period.c. no effect on net income of the next period.d. an overstatement of the beginning inventory by $2 million in the next period.

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 1MC: An understatement of ending inventory in the year 20-1 will cause the owners equity account at the...

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