Multiple Choice
There is an error in computing ending inventory in Year 1. Therefore:
A) the error will have no effect on Year 2 financial statements.
B) after three years, the inventory error will counterbalance.
C) gross profit will continue to be incorrect until an adjusting entry is made.
D) the total gross profit for Year 1 and Year 2 combined will be correct.
Correct Answer:
Verified
Correct Answer:
Verified
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