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

Question

Quizplus · Accepted Answer

Errors in the ending inventory balance can have a ripple effect on subsequent periods as well, as they will affect the cost of goods sold and gross profit calculations in those periods. It is important to correct inventory errors as soon as they are discovered to ensure the accuracy of financial statements over multiple periods.

Errors in the Ending Inventory Balance Only Affect the Current