An error that overstates the ending inventory will also cause net income for the period to be overstated.

Name: An error that overstates the ending inventory will also cause net income for the period to be overstated.
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Question

Quizplus · Accepted Answer

Overstating ending inventory means that the cost of goods sold will be understated, which in turn will result in higher net income. Therefore, an error that overstates ending inventory will also cause net income for the period to be overstated.

An Error That Overstates the Ending Inventory Will Also Cause