Since an error in the period-end inventory causes an offsetting error in the next period:
A)Managers can ignore the error.
B)It is said to be self-correcting.
C)It affects only income statement accounts.
D)If affects only balance sheet accounts.
E)Is immaterial for managerial decision making.

Question

Quizplus · Accepted Answer

An error in the period-end inventory is said to be self-correcting because it will balance out in the next period. However, managers should still strive to accurately account for inventory to avoid future errors and discrepancies.

Since an Error in the Period-End Inventory Causes an Offsetting