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    SassyR36040's Avatar
    SassyR36040 Posts: 1, Reputation: 1
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    #1

    Jan 16, 2008, 12:48 PM
    Error on the company financial statements
    An accountant made a small error in recording the ending inventory balance for the year. He inadvertently left off a zero and now the Inventory accounts shows a $15,500 balance instead of a $155,000 balance. What will be the impact of the error on the company’s financial statements?
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #2

    Feb 5, 2008, 09:27 PM
    Goods are either in stock(inventory) or sold, if the inventory is understated, cost of goods sold is overstated. As a result, income is understated.
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