If the inventory account at the end of the year is understated, the effect will be to
A. overstate the cost of goods sold.
B. understate the net purchases.
C. overstate the gross profit on sales.
D. overstate the goods available for sale.
Answer:A
If the inventory account at the end of the year is understated, the effect will be to
A. overstate the cost of goods sold. B. understate the net purchases. C. overstate the gross profit on sales. D. overstate the goods available for sale.