Multiple Select Question

Select all that apply

Sparky's incorrectly included inventory that was on consignment in its ending inventory count. Consequently, the ending inventory was overstated on the balance

sheet. Explain how this error will affect this year's income statement.

This year's cost of goods sold will be too high.

This year's net income will be too high.

This year's net income will be too low.

This year's cost of goods sold will be too low.

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