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Basic Question 13 of 26
If there is an overstatement in inventory at year-end, net income will ______
B. be overstated.
C. be understated.
A. not be affected.
B. be overstated.
C. be understated.
User Contributed Comments 2
| User | Comment |
|---|---|
| vatsal92 | This is a very good question! |
| choas69 | COGS = Beginning Balance + Purchase - Ending Inventory |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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® 2024 Level I Curriculum, Volume 2, Module 6.