An overstatement of ending inventory will cause an overstatement of assets and an understatement of stockholders' equity on the balance sheet.

Name: An overstatement of ending inventory will cause an overstatement of assets and an understatement of stockholders' equity on the balance sheet.
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If ending inventory is overstated,then assets will be overstated.Cost of goods sold will be understated,so net income will be overstated and stockholders' equity will be overstated.

An Overstatement of Ending Inventory Will Cause an Overstatement of Assets