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Basic Question 2 of 10
If ending inventory is overstated and beginning inventory is understated, the current ratio will be ______.
B. higher
C. constant
A. lower
B. higher
C. constant
User Contributed Comments 3
| User | Comment |
|---|---|
| o123 | beginning inventory has no affect on CR |
| jgraham6 | good one!!! |
| cschulz316 | CURRENT ratio |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe the presentation and disclosures relating to inventories and explain issues that analysts should consider when examining a company's inventory disclosures and other sources of information
CFA® 2026 Level I Curriculum, Volume 2, Module 6.