If ending inventory is overstated, what is the effect on the Net Profit of that year?
A. Overstated
B. Understated
C. No effect
D. Cannot be determined
Answer: Option A
Solution (By JKSSB Mock Tests)
Closing stock is credited to the Trading A/c. An overstatement of closing stock reduces Cost of Goods Sold, thereby inflating (overstating) the Gross and Net Profit.
Explanation:
The e-Payroll module in PFMS is designed to digitize the generation, processing, and payment of salary bills for government employees, ensuring transparency and reducing paperwork.
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