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 income?
A) The inventory overstatement will not affect Net income.
B) Net income will be overstated by $20,000.
C) Net income will be understated by $20,000.
D) Net income will be understated by $40,000.
Correct Answer:
Verified
Correct Answer:
Verified
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