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When closing stock is overstated, it would reduce,

When closing stock is overstated, it would reduce,
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Cost of sales and increase gross profit
  • B Gross profit and increase cost of sales
  • C Purchases and increases sales
  • D Sales and increase purchases
Correct Answer: Option B
Explanation:
when closing stock is overstated, the cost of goods available for sale will be high and the gross profit low. The higher the cost of sales, the lower the gross profit

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