WAEC Accounting 2019 Objective — Question 21
Question 21 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.
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When closing stock is undervalued, the cost of goods sold would be
- A. overstated and the gross profit understatedCorrect
- B. understated and the gross profit overstated
- C. overstated and the gross profit overstated
- D. understated and the gross profit understated
Explanation
When closing stock is undervalued, the cost of goods sold would be overstated and the gross profit understated.
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