The ending merchandise inventory was overstated.This error would cause:
A)net income to be understated.
B)revenue to be understated.
C)net income to be overstated.
D)expense to be overstated.

Name: The ending merchandise inventory was overstated.This error would cause: A)net income to be understated. B)revenue to be understated. C)net income to be overstated. D)expense to be overstated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Overstating ending inventory reduces the cost of goods sold, which increases net income.

The Ending Merchandise Inventory Was Overstated