Balance sheet effects

Balance sheet effects - determines the inventory balance...

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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 
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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...
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