If an inventory amount is reported in error,it can cause a misstatement in:

Question

Quizplus · Accepted Answer

An error in reporting the inventory amount can impact Cost of goods sold, Gross profit, Net income, and Current assets. The misstatement can affect the calculation of Cost of goods sold, which in turn affects the gross profit. Ultimately, both gross profit and Cost of goods sold impact the calculation of net income. Additionally, any incorrect information reported for inventory can result in an incorrect calculation of the current assets. Therefore, all of the given options are incorrect.

If an Inventory Amount Is Reported in Error,it Can Cause