FUND.ACCT.PRIN.(LL)-W/ACCESS >CUSTOM<
25th Edition
ISBN: 9781265661212
Author: Wild
Publisher: MCG CUSTOM
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Question
Chapter 6, Problem 5DQ
To determine
Concept introduction:
Inventory Errors:
Inventory Errors occur due to over-valuation or under-valuation of stock. Such errors are self correcting as Closing Stock of the current year becomes opening stock in the next year, thus they distort net income in only two consecutive years- the period of error and the next period.
To Discuss:
How Inventory errors correct themselves.
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