Post Utme Rsu 2024 Commerce Question 38

Practice objective / multiple choice question 38 from the 2024 Post Utme Rsu Commerce examination.

Post Utme Rsu 2024 Commerce Objective / Multiple Choice
Question 38 POST_UTME_RSU • 2024 • COMMERCE • objective

A warehouse manager is responsible for maintaining the inventory levels of a company. However, due to a mistake, the inventory levels are over-recorded by 10%. What is the impact of this error on the company's financial statements?

Answer Options

A. The company's revenue is overstated by 10%.
B. The company's expenses are understated by 10%.
Correct Answer C. The company's net income is overstated by 10%.
D. The company's cash flow is not affected by the error.
Correct Answer
C
Correct Option:
The company's net income is overstated by 10%.

About This Question

This is Post Utme Rsu 2024 Commerce Question 38. It is one of the objective questions from the 2024 Post Utme Rsu Commerce examination.

View More Post Utme Rsu 2024 Commerce Questions More Post Utme Rsu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support