The ending inventory of XZW was overstated by $6,000 in 20x4.The overstatement will cause XZW's:
A) No misstatements on the 20x5 balance sheet.
B) Cost of goods sold to be overstated by on the 20x4 income statement.
C) Income to be overstated by on the 20x5 income statement.
D) Cost of goods sold to be understated by on the 20x5 income statement.
E) Retained earnings to be understated by on the 20x4 balance sheet.
Correct Answer:
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