At December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost

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At December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2018?

a. Overstates cost of goods sold and understate net income

b. Understates cost of goods sold and overstates net income

c. Leaves both cost of goods sold and net income correct because the errors cancel each other

d. Overstates both cost of goods sold and net income

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0078025839

9th edition

Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas

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Posted Date: Oct 11, 2018 07:01 AM

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At December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost

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b Understates cost of goods sold and overstates net income Inventory ... View the full answer

Intermediate Accounting

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