Multiple Choice
A $15,000 overstatement of the 20X2 ending inventory was discovered after the financial statements for 20X2 were prepared. What was the effect of the inventory error on the 20X2 financial statements?
A) Current assets were overstated and profit was understated.
B) Current assets were understated and profit was understated.
C) Current assets were understated and profit was overstated.
D) Current assets were overstated and profit was overstated.
Correct Answer:
Verified
Correct Answer:
Verified
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