Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 77

For the following questions, circle the best response.

Assuming that ending inventory is counted correctly at the end of 2011, an error in the physical count of ending inventory at the end of 2010 will have had an effect on all of the following except

a. cost of goods sold in the year of the error (2010).

b. total assets in the year of the error (2010).

c. cost of goods sold in the year after the error (2011).

d. total assets in the year after the error (2011).