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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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Craig Baugh

Craig Baugh

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® 2024 Level I Curriculum, Volume 2, Module 6.