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In 2017, Ending Inventory Is Overstated

Question 151

Multiple Choice

In 2017, ending inventory is overstated. What is the effect of the error on net income in 2017 and 2018?


A) Net income is overstated in 2017 and understated in 2018.
B) Net income is understated in 2017 and overstated in 2018.
C) Net income is understated in 2017 and 2018.
D) Net income is overstated in 2017 and 2018.

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