Multiple Choice
The ending merchandise inventory for the current accounting period is overstated by $3,500. What will be the effect of this error?
A) Net income for the current accounting period will be overstated by $3,500.
B) Cost of goods sold for the current accounting period will be overstated by $3,500.
C) Ending merchandise inventory for the next accounting period will be overstated by $3,500.
D) Cost of goods sold for the next accounting period will be understated by $3,500.
Correct Answer:
Verified
Correct Answer:
Verified
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