Question from Inventories
Any enlightenment on the following question…
An analyst notes the following about a company:
Beginning inventory was reported as $5,000.
Costs of goods sold were reported as $8,000.
Ending inventory is $7,000 (the analyst has physically verified this amount).
Which of the following statements is most accurate?
A) If the analyst discovered that beginning inventory was overstated by $1,000, then cost of goods sold must have been understated by $1,000.
B) Purchases must have been $6,000.
C) If the analyst discovered that beginning inventory was understated by $2,000, then earnings before taxes must have been overstated by $2,000. |
发表于 2013-4-12 21:59
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