Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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.