!!!!!!!!!!! What is the combined effect on net income of a $15,000 understatement error to ending inventory for the two-year period if the error is not corrected? Net income will be overstated by $15,000. Net income will be understated by $15,000. The errors are cumulative and the total net income error will be double. The errors cancel out and the total net income for the two periods will be correct.
!!!!!!!!!!! What is the combined effect on net income of a $15,000 understatement error to ending inventory for the two-year period if the error is not corrected? Net income will be overstated by $15,000. Net income will be understated by $15,000. The errors are cumulative and the total net income error will be double. The errors cancel out and the total net income for the two periods will be correct.
Chapter10: Inventory
Section: Chapter Questions
Problem 13EA: If a group of inventory items costing $15,000 had been omitted from the year-end inventory count,...
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![!!!!!!!!!!! What is the combined effect on net income of a $15,000 understatement error to ending inventory for the two-year period if the error is not corrected? Net income
will be overstated by $15,000. Net income will be understated by $15,000. The errors are cumulative and the total net income error will be double. The errors cancel out
and the total net income for the two periods will be correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4f1b5a7-248b-4e1b-9be2-2a0b22d49365%2F2383a6ad-a3bf-40e5-a848-345d52009c15%2Fd8u2aa_processed.png&w=3840&q=75)
Transcribed Image Text:!!!!!!!!!!! What is the combined effect on net income of a $15,000 understatement error to ending inventory for the two-year period if the error is not corrected? Net income
will be overstated by $15,000. Net income will be understated by $15,000. The errors are cumulative and the total net income error will be double. The errors cancel out
and the total net income for the two periods will be correct.
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