Multiple Choice
Hollander Company hired some students to help count inventory during their semester break.Unfortunately,the students added incorrectly and the 2019 ending inventory was overstated by $5,000.What would be the effect of this error in ending inventory?
A) 2019 net income would be overstated.
B) 2019 net income would be understated.
C) 2019 ending retained earnings would be understated.
D) 2019 cost of goods sold would be overstated.
Correct Answer:
Verified
Correct Answer:
Verified
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