'8. Which of the following option will happen if opening stock was inflated in the financial statement by $10,0002 Closing stock will be influenced by $10,000 Profit are understated by $10,000 Profit are overstated by $10,000 Nothing will happen'
Added by Salvador A.
Step 1
- Opening stock = $50,000 - Purchases = $20,000 - Closing stock = $20,000 - Cost of goods sold = Opening stock + Purchases - Closing stock - Cost of goods sold = $50,000 + $20,000 - $20,000 - Cost of goods sold = $50,000 ** Show more…
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