Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 43)
What is the effect of an overvalued inventory on the gross profit of the company?
Gross profit will decrease
Gross profit will increase
Gross profit will stay the same
The effect depends on the company's cash flow
הֶסבֵּר
The company’s gross profit will increase due to the overvaluation of inventory.