If a purchase on credit is omitted from the purchase account in error and ending inventory is correctly determined, net income for the period would be understated.

Name: If a purchase on credit is omitted from the purchase account in error and ending inventory is correctly determined, net income for the period would be understated.
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Question

Quizplus · Accepted Answer

If a purchase on credit is omitted, expenses are understated, leading to an overstatement of net income, not an understatement.

If a Purchase on Credit Is Omitted from the Purchase