While Taking a Physical Inventory, a Company Counts Their Inventory

question 100

Short Answer

While taking a physical inventory, a company counts their inventory as less than the actual amount on hand. How will this error affect the income statement?

---

Definitions:

Bearer

A person in possession of an instrument, such as a check or bond, that is not made out to a specific payee.

Finance Repairs

The process of arranging for or providing financial support to cover the costs of necessary repairs, often in the context of property or vehicle maintenance.

Pre-printed Forms

Documents designed with standardized and fixed information that allow for specific details to be filled in by the user.

Job/Position Descriptions

Documents that outline the duties, responsibilities, required qualifications, and reporting relationships of a specific job.