An overstatement of the ending inventory causes an overstatement of current assets and proﬁt, as well as an overstatement of cost of goods sold for the same year.

Question

Quizplus · Accepted Answer

An overstatement of the ending inventory causes an overstatement of current assets and profit, but it results in an understatement of the cost of goods sold for the same year.

An Overstatement of the Ending Inventory Causes an Overstatement of Current