Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 20)
If a company overstates its ending inventory, how is its profit for the year impacted?
Profit is understated.
Profit is overstated.
Profit is unaffected.
The impact depends on the cost of goods sold.
Explanation
Overstating ending inventory leads to a higher gross profit.
Comments (0)
