Errors in the period-end inventory balances only have an impact on the current period's records and financial statements.

Question

Quizplus · Accepted Answer

Errors in period-end inventory balances can impact the current period's records and financial statements as well as future periods if not corrected. It can affect the accuracy of cost of goods sold, gross profit margin, and net income. It can also affect the valuation of inventory on the balance sheet, which could impact ratios and future decisions.

Errors in the Period-End Inventory Balances Only Have an Impact