Which Statement Is Not Correct About Inventory Errors

question 86

Multiple Choice

Which statement is not correct about inventory errors?

• A)Misstatements in inventory can affect the beginning inventory amounts.
• B)Misstatements in inventory can affect the ending inventory amounts.
• C)Misstatements in inventory affect current ratios.
• D)Misstatements in inventory have no effect on net income.

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Definitions:

Issues Management

The process by which an organization identifies and resolves issues of public concern that may impact its ability to operate effectively.

Preparing

The act of making something ready for use or consideration.

Analyzing Historical

The process of examining past events and contexts to understand their causes, effects, and significance.

Reputation Building

The strategic process of managing and improving how an organization is perceived by others to gain trust and respect.