On December 31 (end of the accounting period) a company completed an inventory count and included some merchandise that had been received but was not unpacked. No purchase had been recorded. The error causes an:
A) understatement of inventory, purchases, and accounts payable.
B) understatement of both income and assets by the same amount.
C) overstatement of income and understatement of accounts payable.
D) overstatement of inventory, purchases, and accounts payable.

Question

Quizplus · Accepted Answer

The Answer of On December 31 (end of the accounting period) a company completed an inventory count and included some merchandise that had been received but was not unpacked. No purchase had been recorded. The error causes an:
A) understatement of inventory, purchases, and accounts payable.
B) understatement of both income and assets by the same amount.
C) overstatement of income and understatement of accounts payable.
D) overstatement of inventory, purchases, and accounts payable.

On December 31 (End of the Accounting Period) a Company