If ending inventory is overstated this period, beginning inventory will be understated in the next period.

Name: If ending inventory is overstated this period, beginning inventory will be understated in the next period.
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Question

Quizplus · Accepted Answer

Beginning inventory for the next period is the same as the ending inventory of the current period, so if ending inventory is overstated this period, beginning inventory will also be overstated in the next period.

If Ending Inventory Is Overstated This Period, Beginning Inventory Will