Question

Omar Company uses a periodic inventory system and erroneously overstated ending inventory by $10,000 for the year ended December 31, 2017. Ignoring the tax effect, the effect on the 2017 financial statement includes an

Answer 1

Answer:

Profit will be overstated and Assets will be overstated

Explanation:

Income Statement:

Profit will be overstated by $10,000

Statement of financial position:

Assets will be overstated by $10,000