An error in the physical count of goods on hand at the end of the current period resulted in a $3000 understatement of the ending inventory. the effect of this error in the next period is to overstate beginning inventory understate gross profit understate net income understate begining inventory

An error in the physical count of goods on hand at the end of the current period resulted in a $3000 understatement of the ending inventory. the effect of this error in the next period is to overstate beginning inventory understate gross profit understate net income understate begining inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An error in the physical count of goods on hand at the end of the current period resulted in a $3000 understatement of the ending inventory. the effect of this error in the next period is to

overstate beginning inventory

understate gross profit

understate net income

understate begining inventory

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