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If the Ending Inventory Balance Was Overstated on the Financial

Question 87

Multiple Choice

If the ending inventory balance was overstated on the financial statements and the beginning inventory balance was understated, but all other items were properly reported, the calculated inventory turnover ratio:


A) could not be determined from the information given.
B) would be too high.
C) would be unaffected by these errors.
D) would be too low.

Correct Answer:

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