Overstating ending inventory in the current period will overstate the following year's net income.

Name: Overstating ending inventory in the current period will overstate the following year's net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Overstating ending inventory in the current period will overstate the current period's net income and understate the following year's net income due to the cost of goods sold being understated in the current period and overstated in the next.

Overstating Ending Inventory in the Current Period Will Overstate the Following