An error in the reported inventory will cause errors in all of the following EXCEPT

Name: An error in the reported inventory will cause errors in all of the following EXCEPT
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The reported inventory only affects the balance sheet and the statement of owner's equity because the value of inventory is included in the calculation of assets and owner's equity. The error in inventory will not directly affect the cash account or the following year's financial statements.

An Error in the Reported Inventory Will Cause Errors in All