If the Amount Assigned to Ending Inventory Is Incorrect

question 46

Multiple Choice

If the amount assigned to ending inventory is incorrect,

• A)the balance sheet is affected, but the income statement is not.
• B)the income statement is affected, but the balance sheet is not.
• C)the balance sheet is affected, but cost of goods sold is not.
• D)both the balance sheet and income statement are affected.

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Definitions:

Real-Time Reporting

The process of providing immediate updates and financial information as events occur, allowing for timely decision-making and analysis.

Virtual Close

A method allowing companies to quickly estimate their financial position at any given time without waiting for the formal closing process.

Flash Reporting

A type of financial report that provides an immediate snapshot of a company's financial condition, often used for internal decision-making purposes.

Accounting Books

Official records that systematically track all financial transactions and financial statements of an entity over time.