Apex Company uses the periodic inventory cost flow method. If Apex's ending inventory is overstated due to an accounting error, what is the effect on net income and retained earnings?

Name: Apex Company uses the periodic inventory cost flow method. If Apex's ending inventory is overstated due to an accounting error, what is the effect on net income and retained earnings?
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Question

Quizplus · Accepted Answer

Overstating ending inventory in a periodic inventory system will understate cost of goods sol

Apex Company Uses the Periodic Inventory Cost Flow Method