ACC 304 All Assignments ACC 304 All Assignments | Página 87

a. assets and stockholders' equity were overstated but liabilities were
not affected.
b. stockholders' equity was the only item affected by the omission.
c. assets, liabilities, and stockholders' equity were understated.
d. none of these.
46. What is the effect of a $50,000 overstatement of last year's
inventory on current years ending retained earning balance?
a. Understated by $50,000.
b. No effect.
c. Overstated by $50,000.