Asked by

Evelyn Marquez

on Oct 28, 2024

Verified

Myrna Company overstated the beginning inventory on January 1, 2010, by $20, 000.No other errors were identified.If the error is not discovered, which of the following net income effects related to the inventory error are true? $\begin{array}{llll}& \text{ Net Income }& & \\ & 2009& 2010& 2011\\ \text{ I. }& \text{ understated }& \text{ overstated }& \text{ correct }\\ \text{ II. }& \text{ overstated }& \text{ understated }& \text{ correct }\\ \text{ III. }& \text{ correct }& \text{ understated }& \text{ overstated }\\ \text{ IV. }& \text{ overstated }& \text{ understated }& \text{ overstated }\end{array}$


A) I
B) II
C) III
D) IV