Burt the accountant made a small error in recording the ending inventory balance for the year. He inadvertently left off a zero and now the Inventory accounts shows a $15,500 balance instead of a $155,000 balance.
What will be the impact of the error on the company's financial statements?© BrainMass Inc. brainmass.com March 4, 2021, 8:20 pm ad1c9bdddf
The effect of an error resulting in an understatement of ending inventory is to:
overstate cost of goods sold of the current period ...
161 words explain the impact of error in a company's financial statements.