Multiple Choice
Zeus Company understated its ending inventory. Which of the following answers correctly states the effect of the error in the present period?
A) Overstatement of total assets and cost of goods sold.
B) Understatement of total assets and gross margin.
C) Understatement of liabilities and retained earnings.
D) Overstatement of cost of goods sold and retained earnings.
Correct Answer:
Verified
Correct Answer:
Verified
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