Question: 9. If, while taking a physical inventory, the company counts their inventory figures more than the actual amount. How will the error affect their bottom

9. If, while taking a physical inventory, the company counts their

9. If, while taking a physical inventory, the company counts their inventory figures more than the actual amount. How will the error affect their bottom line? a. No change to net income. b. Net income will be overstated c. Net income will be understated. d. Only gross profit will be affected. 10. Which of the following inventory cost methods is appropriate for a business who has inventory with a relatively small number of unique items and a high cost per item? a. FIFO b. LIFO c. average d. specific identification

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