Assume that ending inventory in fiscal 2012 is overstated by $1,000.What impact will this have on fiscal 2013 financial reporting?
A) Retained earnings is overstated by $1,000.
B) No effect on inventory value on the balance sheet.
C) Retained earnings is understated by $1,000.
D) Inventory is understated on the balance sheet.
Correct Answer:
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