If a misstatement of inventory occurs, the net income for ________ periods will be misstated.
A)0
B)1
C)2
D)3

Name: If a misstatement of inventory occurs, the net income for ________ periods will be misstated. A)0 B)1 C)2 D)3
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Question

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Inventory misstatements affect the calculation of the cost of goods sold, which in turn affects net income. The error will impact the period in which it occurred and the following period when the inventory error is corrected, leading to misstatements in two periods.

If a Misstatement of Inventory Occurs, the Net Income for ________