An Incorrect Valuation of the Ending Inventory Affects the Balance

question 23

True/False

An incorrect valuation of the ending inventory affects the balance sheet but not the income statement.
BT: Knowledge

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Definitions:

Digital Cash

Money stored electronically in place of physical currency.

Physical Currency

Tangible money, such as coins and paper bills, used as a medium of exchange for goods and services.

Microchips

Small electronic components that contain integrated circuits used in various devices for computing and processing tasks.

Depositary Bank

A financial institution that holds and manages the deposits of securities for its clients and facilitates trading.