An understatement of ending inventory in a period will result in an understatement of gross margin in the next period.

Name: An understatement of ending inventory in a period will result in an understatement of gross margin in the next period.
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Question

Quizplus · Accepted Answer

An understatement of ending inventory in one period results in an understatement of cost of goods sold and an overstatement of gross margin in that same period, not the next.

An Understatement of Ending Inventory in a Period Will Result