If,at the end of a period,Michaels Company erroneously excluded some goods from its ending inventory and also erroneously did NOT record the purchase of these goods in its accounting records,these errors would cause
A) no effect on the company's net income,working capital,and retained earnings.
B) the company's cost of goods available for sale,cost of goods sold,and net income to be understated.
C) the company's ending inventory,cost of goods available for sale,and retained earnings to be understated.
D) the company's ending inventory,cost of goods sold,and retained earnings to be understated.

Question

Quizplus · Accepted Answer

The exclusion of goods from both the ending inventory and purchase records means that the cost of goods available for sale and cost of goods sold are unaffected, resulting in no impact on net income, working capital, or retained earnings.

If,at the End of a Period,Michaels Company Erroneously Excluded Some