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Slide32 - Effects of Inventory Errors An undiscovered...

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Unformatted text preview: Effects of Inventory Errors - An undiscovered inventory error usually affects two reporting periods - The error will cause misstated amounts in the period in which the error occurred, but the effects will then be counterbalanced by identical offsetting amounts in the following period - lf ending inventory is understated, retained earnings in understated - lf ending inventory is overstated, retained earnings is overstated ...
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