Inventory Errors Video Lessons

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Problem: Inventory at the end of the current period was understated because one bin of inventory was not counted or included in the ending inventory totals. Because of this error: a. Net income for the period was overstated. b. Net income for the following period will be overstated. c. The cost of goods sold for the current period was understated. d. Total equity for the current year is overstated.

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Problem Details

Inventory at the end of the current period was understated because one bin of inventory was not counted or included in the ending inventory totals. Because of this error:

a. Net income for the period was overstated.

b. Net income for the following period will be overstated.

c. The cost of goods sold for the current period was understated.

d. Total equity for the current year is overstated.

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