IIA
IIA-CIA-PART3 · Question #94
A small chain of grocery stores made a reporting error and understated its ending inventory. What effect would this have on the income statement for the following year?
The correct answer is C. Net income would be overstated. You've hit your session limit · resets 10:20pm (America/New_York)
Question
A small chain of grocery stores made a reporting error and understated its ending inventory. What effect would this have on the income statement for the following year?
Options
- ANet income would be understated.
- BNet income would not be affected.
- CNet income would be overstated.
- DNet income would be negative.
How the community answered
(37 responses)- A5% (2)
- B14% (5)
- C76% (28)
- D5% (2)
Explanation
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