Multiple Choice
Match each situation to its impact (a-c) on the current year's net income.
-The beginning inventory was recorded as $10,000, when actual inventory on hand was $12,000.
A) Net income for the current year will be overstated.
B) Net income for the current year will be understated.
C) There will be no error effect on net income.
Correct Answer:

Verified
Correct Answer:
Verified
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