Argyle Company failed to include a number of inventory items in the inventory count at the end of the last period.Assuming no other inventory errors,the effect on the current period is
A)an overstatement of gross profit.
B)an understatement of COGS.
C)an overstatement of ending inventory.
D)an understatement of net income.

Question

Quizplus · Accepted Answer

The omission of inventory items in the previous period would have understated ending inventory, leading to an overstatement of COGS and an understatement of net income in the current period.

Argyle Company Failed to Include a Number of Inventory Items