1.
Which of the following is correct when, in the same year, beginning inventory is overstated by
$1,300 and ending inventory is understated by $700?
Net income is understated by $600.
Net income is understated by $2,000.
Net income is overstated by $600.
Net income is overstated by $2,000.
Net income is understated by $600.
Net income is understated by $2,000.
Net income is overstated by $600.
Net income is overstated by $2,000.
Solution
Net income is understated by $2,000.
Net income is understated by $2,000.