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Steven, Incorporated Uses the Perpetual Inventory System

Question 115

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Steven, Incorporated uses the perpetual inventory system. The company's management, under pressure to report favorable results to shareholders, included $15,000 of inventory that had already been sold in its ending inventory. Indicate whether this misstatement would overstate (O), understate (U), or not affect (NA)each of the elements of the financial statements. You do not need to enter amounts.
Steven, Incorporated uses the perpetual inventory system. The company's management, under pressure to report favorable results to shareholders, included $15,000 of inventory that had already been sold in its ending inventory. Indicate whether this misstatement would overstate (O), understate (U), or not affect (NA)each of the elements of the financial statements. You do not need to enter amounts.

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