An overstatement of the beginning inventory results in
A) an overstatement of profit.
B) a need to adjust purchases.
C) an understatement of profit.
D) no effect on the period's profit.

Name: An overstatement of the beginning inventory results in A) an overstatement of profit. B) a need to adjust purchases. C) an understatement of profit. D) no effect on the period's profit.
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Question

Quizplus · Accepted Answer

An overstatement of the beginning inventory increases the cost of goods sold, which reduces the profit for the period.

An Overstatement of the Beginning Inventory Results in