IIA
IIA-CIA-PART3 · Question #132
IIA-CIA-PART3 Question #132: Real Exam Question with Answer & Explanation
The correct answer is D. Cost of sales is overstated and net Income is understated.. See the full explanation below for the reasoning.
Question
A retail organization mistakenly did have include $10,000 of Inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?
Options
- ACost of sales and net income are understated.
- BCost of sales and net income are overstated.
- CCost of sales is understated and not income is overstated.
- DCost of sales is overstated and net Income is understated.
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