Errors in the period-end inventory balance only affect the current period's records and financial statements.

Question

Quizplus · Accepted Answer

Errors in the period-end inventory balance can have a ripple effect on subsequent periods as well, as the incorrect balance can affect the cost of goods sold, gross profit, and net income calculations in future periods. It is important to correct inventory errors as soon as they are discovered to prevent further inaccuracies in financial reporting.

Errors in the Period-End Inventory Balance Only Affect the Current