Multiple Choice
Ending inventory for the current year is overstated by $20 000.What effect will this error have on the following year's Net profit?
A) Net profit will be understated by $40 000.
B) The inventory overstatement will not affect Net profit.
C) Net profit will be understated by $20 000.
D) Net profit will be overstated by $20 000.
Correct Answer:
Verified
Correct Answer:
Verified
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