Purchases and inventory misstated
Omitting both the purchase of goods and the inventory results in an understated inventory and accounts payable. Net income is not affected. Assuming a company has a current ratio greater than 1, why is it still important to adjust for the error in inventory record keeping.

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The Answer of Purchases and inventory misstated
Omitting both the purchase of goods and the inventory results in an understated inventory and accounts payable. Net income is not affected. Assuming a company has a current ratio greater than 1, why is it still important to adjust for the error in inventory record keeping.

Purchases and Inventory Misstated