question 18 (mandatory) (2 points) the understatement of the beginning inventory balance causes: cost of…

question 18 (mandatory) (2 points) the understatement of the beginning inventory balance causes: cost of goods sold to be understated and net income to be understated. cost of goods sold to be understated and net income to be overstated. cost of goods sold to be overstated and net income to be overstated. cost of goods sold to be overstated and net income to be understated. cost of goods sold to be overstated and net income to be correct. question 19 (mandatory) (2 points)

question 18 (mandatory) (2 points) the understatement of the beginning inventory balance causes: cost of goods sold to be understated and net income to be understated. cost of goods sold to be understated and net income to be overstated. cost of goods sold to be overstated and net income to be overstated. cost of goods sold to be overstated and net income to be understated. cost of goods sold to be overstated and net income to be correct. question 19 (mandatory) (2 points)

Answer

Brief Explanations:

The cost - of - goods - sold (COGS) formula is COGS = Beginning Inventory + Purchases - Ending Inventory. If the beginning inventory is understated, using this formula, COGS will be overstated. Net income is calculated as Revenue - COGS - Other Expenses. With overstated COGS, net income will be understated.

Answer:

Cost of goods sold to be overstated and net income to be understated.