What are the effects of overstating inventory?
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When an ending inventory overstatement occurs..
the costs of good is sold stated too low, which means that net income before taxes is overstated by the amount of inventory overstatement.However you then have to pay income taxes on the amount of the overstatement..
I think it will help you..
the costs of good is sold stated too low, which means that net income before taxes is overstated by the amount of inventory overstatement.However you then have to pay income taxes on the amount of the overstatement..
I think it will help you..
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