Kizspy Question: 28
(Choose 1 answer)
If a company's beginning inventory for the current year was understated by $5,000, what would be the impact
on the cost of goods sold and net income for the current year?
A. COGS understated by $5,000, Net income overstated by $3,500
B. COGS overstated by $5,000, Net income understated by $5,000
C. COGS understated by $5,000, Net income overstated by $5,000
D. COGS overstated by $5,000, Net income understated by $3,500
E. YES impact on COGS and net income
