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

Question

Quizplus · Accepted Answer

An ending inventory error in one year will affect the inventory at the start of the next year because the ending inventory of the current year becomes the beginning inventory of the next year. Any errors in the ending inventory of the current year will carry over to the next year's beginning inventory.

An Ending Inventory Error in One Year Does Not Have