Multiple Choice
On December 31,Year 1,Owings Corporation overstates the ending inventory by $5,000.How will this affect the amount of retained earnings shown on the balance sheet at December 31,Year 2?
A) Retained Earnings will be correctly stated.
B) Retained Earnings will be understated by $5,000.
C) Retained Earnings will be overstated by $5,000.
D) Cannot be determined with the above information.
Correct Answer:
Verified
Correct Answer:
Verified
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