Multiple Choice
Phipps Corporation overstated its ending inventory on December 31,Year 1.Which of the following correctly identifies the effect of the error on Year 2 financial statements?
A) Cost of goods sold is overstated.
B) Gross margin overstated.
C) Ending inventory is understated.
D) Net income is overstated.
Correct Answer:
Verified
Correct Answer:
Verified
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