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Basic Question 13 of 26

If there is an overstatement in inventory at year-end, net income will ______

A. not be affected.
B. be overstated.
C. be understated.
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User Contributed Comments 2

User Comment
vatsal92 This is a very good question!
choas69 COGS = Beginning Balance + Purchase - Ending Inventory
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe the measurement of inventory at the lower of cost and net realisable value and its implications for financial statements and ratios

CFA® 2025 Level I Curriculum, Volume 2, Module 6.