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In 2019,beginning Inventory Is Overstated

Question 133

Multiple Choice

In 2019,beginning inventory is overstated.What is the effect of the error on net income in 2019 and 2020?


A) Net income is overstated in 2019 and 2020.
B) Net income is understated in 2019 and 2020.
C) Net income is understated in 2019 and overstated in 2020.
D) Net income is understated in 2019 and correctly stated in 2020.

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