The accountants of a merchandising company accidentally understated the company's ending inventory. (The company uses...
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Accounting
The accountants of a merchandising company accidentally understated the company's ending inventory. (The company uses a periodic inventory system). As a result of this error, which of the following misrepresentations will be made in the company's financial statements? Select one: a. Cost of Goods Sold will be overstated and Net Income will be understated. b. Cost of Goods Sold will be overstated and Net Income will be overstated. c. Cost of Goods Sold will be understated and Net Income will be understated. d. Cost of Goods Sold will be understated and Net Income will be overstated
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