overstatement of ending inventory in the current period results in the understatement of equity in the following year.

Name: overstatement of ending inventory in the current period results in the understatement of equity in the following year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Overstatement of ending inventory in the current period results in an overstatement of equity in the following year, as it would cause an overstatement of net income due to lower cost of goods sold.

Overstatement of Ending Inventory in the Current Period Results in the Understatement