Because an inventory error causes an offsetting error in the next period:

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Quizplus · Accepted Answer

Because the error will result in an opposite error in the following period, it is sometimes said to be self-correcting. This means that over time, the error will eventually correct itself. It may not affect only income statement or balance sheet accounts and managers should not ignore the error, but instead should investigate and correct the cause of the inventory error to minimize any potential impact on financial statements. Therefore, option D is the best choice.

Because an Inventory Error Causes an Offsetting Error in the Next