What will be effect of overstating the beginning inventory

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Reference no: EM131027077

Alpha Company's beginning inventory should have been $85,000, but instead, the bookkeeper listed it as $95,000. The manager told the bookkeeper not to "worry" about the mistake, because it would resolve itself in the following year.

What will be the effect of overstating the beginning inventory?

Should the bookkeeper be concerned with the manager's advice?

Reference no: EM131027077

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