Question

While finalizing the current year's profit, the company realized that there was an error in the valuation of closing Inventory of the previous year. In the previous year, closing Inventory was valued more by 50,000. As a result:

A Previous year's profit is overstated and current year's profit is also overstated
B Previous year's profit is overstated and current year's profit is understated
C Previous year's profit is understated and current year's profit is also understated
D Previous year's profit is understated and current year's profit is overstated
E None of the above
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)