An Error in the Ending Inventory for the Year Ended

question 116

Multiple Choice

An error in the ending inventory for the year ended December 31,2015:

• A)automatically creates errors in Cost of Goods Sold in the 2015 and 2016 financial statements.
• B)has no effect on the 2015 financial statements,but will create an error in the 2016 financial statements.
• C)automatically creates errors in the ending inventory balance in the 2015 and 2016 financial statements.
• D)affects only the 2015 financial statements.

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Definitions:

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