Q185
Overvaluation of opening stock in financial accounting results ________.
A.
decreases costing profit
B.
decreases financial accounts profit
AnswerC.
increases costing profit
D.
increases financial accounts profit
Answer: Option B
Solution
Answer: Option B
Solution:
Overvaluation of opening stock in financial accounting results decreases financial accounts profit. Overvalued opening inventory means understated profit and and undervalued opening inventory means high profit.