Which of these is not a possible source of error in calculating closing inventory?
A) An incorrect cut-off between accounting periods.
B) Mistakes in counting during the stocktake.
C) Mistakes in the price at which the goods are sold to customers.
D) Mistakes in dealing with goods on consignment.

Question

Quizplus · Accepted Answer

Mistakes in the price at which the goods are sold to customers is not a factor in calculating closing inventory, as the calculation relies on the cost of the goods, not the sale price. Options A, B, and D are all possible sources of error that can affect the accuracy of closing inventory calculations.

Which of These Is Not a Possible Source of Error