The ending inventory for Wattis Company was overstated by $6,000 in 2011. The overstatement will cause Wattis Company's
A) retained earnings to be understated on the 2011 balance sheet.
B) cost of goods sold to be understated on the 2012 income statement.
C) cost of goods sold to be overstated on the 2011 income statement.
D) 2012 balance sheet not to be misstated.

Question

Quizplus · Accepted Answer

The Answer of The ending inventory for Wattis Company was overstated by $6,000 in 2011. The overstatement will cause Wattis Company's
A) retained earnings to be understated on the 2011 balance sheet.
B) cost of goods sold to be understated on the 2012 income statement.
C) cost of goods sold to be overstated on the 2011 income statement.
D) 2012 balance sheet not to be misstated.

The Ending Inventory for Wattis Company Was Overstated by $6,000