WAEC - Accounts Principles Of Accounts (2012 - No. 3)
When closing stock is overstated, it would reduce,
cost of sales and increase gross profit
gross profit and increase cost of sales
purchases and increases sales
sales and increase purchases
Explanation
when closing stock is overstated, the cost of goods available for sale will be high and the gross profit low. The higher the cost of sales, the lower the gross profit
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