Ask Question
15 May, 00:25

Albert Company discovers in 2017 that its ending inventory at December 31, 2016, was $5,000 understated. What effect will this error have on:

+5
Answers (1)
  1. 15 May, 00:56
    0
    The error will make the net profit at 31 December, 2016 to be understated while a net loss at the same date will be overstated.

    Explanation:

    The issue is that a higher closing inventory lead to a higher profit while a lower closing inventory will lead to a lower profit.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Albert Company discovers in 2017 that its ending inventory at December 31, 2016, was $5,000 understated. What effect will this error have ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers