Multiple Choice
Use this information to answer the following question. 
In addition, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be
A) understated by $11,000.
B) overstated by $4,000.
C) understated by $7,000.
D) understated by $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
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