During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?

Question

Xaibi Aslam · Accepted Answer

The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013

Xaibi Aslam · Answer

The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013

Xaibi Aslam · Answer

The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013

Xaibi Aslam · Answer

The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013

Question #72945