A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV)rule in the current period distorts financial results for the current accounting period:
A)only.
B)and the period before.
C)and the period after.
D)and all periods after.

Question

Quizplus · Accepted Answer

The ending inventory for the current period becomes the beginning inventory for the next period.As a result,an error in ending inventory of the current period result in an error in the beginning inventory of the next period and distorts the financial results of both accounting periods.

A One-Time Error in the Application of the Lower of Cost