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Suppose That Hastings Corporation Overstates Its Ending Inventory for 2018

Question 161

Multiple Choice

Suppose that Hastings Corporation overstates its ending inventory for 2018.What effect will this have on the reported amount of cost of goods sold for 2018?


A) Overstate cost of goods sold.
B) Understate cost of goods sold.
C) Have no effect on cost of goods sold.

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