Which of the following is correct when, in the same year, beginning inventory is overstated by $2,200 and ending inventory is understated by $790?Multiple ChoiceNet income is understated by $1,410.Net Income is understated by $2,990.Net income is overstated by $1,410.Net Income is overstated by $2,990.

The net income is calculated as difference between sales and total costs. Gross profit = Sales -…

Which of the following is correct when, in the same year, beginning inventory is overstated by $2,200 and ending inventory is understated by $790? Multiple Choice O Net income is understated by $1,410. Net Income is understated by $2,990. Net income is overstated by $1,410. Net Income is overstated by $2,990.

Which of the following is correct when, in the same year, beginning inventory is overstated by $2,200 and ending inventory is understated by $790? Multiple Choice O Net income is understated by $1,410. Net Income is understated by $2,990. Net income is overstated by $1,410. Net Income is overstated by $2,990.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PA: Assuming a companys year-end inventory were overstated by $5,000, indicate the effect...

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