Overstating ending inventory will overstate all of the following except
A) assets.
B) cost of goods sold.
C) net income.
D) owner's equity.

Question

Quizplus · Accepted Answer

Overstating ending inventory will decrease cost of goods sold, which in turn will increase gross profit and net income. It will also increase assets and owner's equity due to the higher valuation of inventory on the balance sheet.

Overstating Ending Inventory Will Overstate All of the Following Except