An overstatement of the beginning inventory results in
A)an overstatement of profit.
B)an understatement of profit.
C)no effect on the period's profit.
D)a need to adjust purchases.

Name: An overstatement of the beginning inventory results in A)an overstatement of profit. B)an understatement of profit. C)no effect on the period's profit. D)a need to adjust purchases.
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Question

Quizplus · Accepted Answer

An overstatement of the beginning inventory increases the cost of goods sold, which reduces the profit for the period.

An Overstatement of the Beginning Inventory Results in