Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 13 - No. 2)
If a company overstates its beginning inventory, what is the effect on the cost of goods sold (COGS) and net income?
a) COGS is understated, net income is overstated.
b) COGS is understated, net income is understated.
c) COGS is overstated, net income is understated.
d) COGS is overstated, net income is overstated.
Explanation
COGS is overstated, net income is overstated.
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