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Basic Question 2 of 10

If ending inventory is overstated and beginning inventory is understated, the current ratio will be ______.

A. lower
B. higher
C. constant
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User Contributed Comments 3

User Comment
o123 beginning inventory has no affect on CR
jgraham6 good one!!!
cschulz316 CURRENT ratio
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe the presentation and disclosures relating to inventories and explain issues that analysts should consider when examining a company's inventory disclosures and other sources of information

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