If a company understates its ending inventory balance for 2012 by $15,500,what are the effects on its net income for 2012 and 2011? Effect on 2012 Net Income Effect on 2011 Net Income
A) Overstated by $15,500 Understated by $15,500
B) Understated by $15,500 Overstated by $15,500
C) Understated by $15,500 No effect
D) Overstated by $15,500 No effect
Correct Answer:
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