An overstatement of ending inventory in the current period results in the understatement of Net income in the current year.

Name: An overstatement of ending inventory in the current period results in the understatement of Net income in the current year.
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Question

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An overstatement of ending inventory in the current period results in an understatement of the cost of goods sold, which in turn overstates net income for the current year.

An Overstatement of Ending Inventory in the Current Period Results