Question

current year profit is overstated when?
options
1) closing stock is overvalued
2) closing stock is undervalued
3) opening stock is undervalued
4)both 1 & 2​

Answer 1

Answer:

In case of overstatement of closing stock in previous year the profit of the previous year is overstated and the profit of the current year is understated....

CLOSING STOCK IS OVER VALUED...

Answer 2

$\large \bf\pink {\fbox{option \: 1 }}$