Use this information to answer the following question.

In addition, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be
A)understated by $11,000.
B)overstated by $4,000.
C)understated by $7,000.
D)understated by $4,000.

Question

Use this information to answer the following question.

In addition, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be
A)understated by $11,000. 
B)overstated by $4,000. 
C)understated by $7,000. 
D)understated by $4,000.

Quizplus · Accepted Answer

The Answer of Use this information to answer the following question.

In addition, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be
A)understated by $11,000. 
B)overstated by $4,000. 
C)understated by $7,000. 
D)understated by $4,000.

Use This Information to Answer the Following Question