According to the data in Table 11-2, what is the critical path?

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. d. Need more information to determine.

The days' sales in receivables ratio indicates the number of days it takes to collect the average level of accounts receivable

Indicate whether the statement is true or false