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Cesar Segura
on Nov 15, 2024

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The ending inventory for raw materials was overstated. This error will cause:

A) the cost of raw materials used to be understated.
B) the cost of goods sold to be overstated.
C) the net income to be understated.
D) Answers A and B are correct.

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Cost Of Raw Materials Used

The total expense incurred by a company for the raw materials that were consumed in the production process during a specific period.

  • Comprehend the consequences of inaccuracies in financial reports and the methods for their rectification.
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Brenda IbarraNov 21, 2024
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