If an Error in Valuing Inventory Occurs in One Year

question 132

Multiple Choice

If an error in valuing inventory occurs in one year:

• A)It has no effect upon income in the following year.
• B)It has no effect upon the income statement,only on the balance sheet.
• C)It is self-correcting after two years.
• D)Retained earnings will be adversely affected until corrected.

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