Balance sheet effects

Balance sheet effects - determines the inventory balance...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Balance sheet effects . An incorrect inventory balance causes the reported value of  assets and owner's equity on the balance sheet to be wrong. This error does not affect  the balance sheet in the following accounting period, assuming the company accurately 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: determines the inventory balance for that period. Impact of Error on Error in Inventory Assets = Liabilities + Owner's Equity Understated Understated No Effect Understated Overstated Overstated No Effect Overstated...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online