If a Company Makes an Error When Counting Ending Inventory

question 32

True/False

If a company makes an error when counting ending inventory in 2013, the effect of the error will cancel out at the end of 2014.

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Definitions:

Expense Of Business

Costs incurred in the operation of a business, including costs of goods sold, overhead, payroll, and other operating expenses.

Debt Ratio

The Debt Ratio is a financial metric that compares a company's total liabilities to its total assets, showing the proportion of a company's assets financed by debt.