The ending merchandise inventory for the current year is overstated by $28,000. What effect will this error have on the following year's net income?
A) The net income will be overstated by $56,000.
B) The net income will be overstated by $28,000.
C) The net income will be understated by $28,000.
D) The net income will be understated by $56,000.
C
Business
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Indicate whether this statement is true or false.
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Which of the following capital budgeting techniques may potentially ignore part of a project's relevant cash flows?
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