An error in the reported inventory will cause errors in all of the following EXCEPT the:
A)Balance Sheet.
B)Statement of Retained Earnings.
C)following year's financial statements.
D)cash account.

Question

Quizplus · Accepted Answer

An error in the reported inventory will not directly affect the cash account, as cash is a separate account that records actual cash transactions. However, the error may indirectly impact cash if it leads to incorrect decision making by management or investors, which could affect the company's financial performance and cash flows in the future.

An Error in the Reported Inventory Will Cause Errors in All