Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be
A) understated by $22,000.
B) overstated by $8,000.
C) understated by $14,000.
D) understated by $8,000.

Question

Use this information to answer the following question.  In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be
A) understated by $22,000. 
B) overstated by $8,000. 
C) understated by $14,000. 
D) understated by $8,000.

Quizplus · Accepted Answer

The Answer of Use this information to answer the following question.  In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be
A) understated by $22,000. 
B) overstated by $8,000. 
C) understated by $14,000. 
D) understated by $8,000.

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