If a company overstates its ending inventory for the current year, what are the effects on cost of goods sold and net income for the current year? $\begin{array}{ll}
\text { Effect on Cost of Goods Sold } & \text { Effect on Net Income } \
\hline \text { a. Understated } & \text { Overstated } \
\text { b. Overstated } & \text { No effect } \
\text { c. Understated } & \text { Understated } \
\text { d. Overstated } & \text { Overstated }
\end{array}$

Question

Quizplus · Accepted Answer

The Answer of If a company overstates its ending inventory for the current year, what are the effects on cost of goods sold and net income for the current year? $\begin{array}{ll}
\text { Effect on Cost of Goods Sold } & \text { Effect on Net Income } \
\hline \text { a. Understated } & \text { Overstated } \
\text { b. Overstated } & \text { No effect } \
\text { c. Understated } & \text { Understated } \
\text { d. Overstated } & \text { Overstated }
\end{array}$

If a Company Overstates Its Ending Inventory for the Current