An error on inventory in one year does not have any effect on the inventory at the start of the next year.

Question

Quizplus · Accepted Answer

An error in inventory in one year can carry over and affect the inventory at the start of the next year. For example, if there is an overstatement of inventory in one year, it will also overstate the inventory at the beginning of the next year, leading to potential distortions in financial statements and performance measures. It is important to correct any inventory errors as soon as possible to ensure accurate reporting.

An Error on Inventory in One Year Does Not Have