FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:!!!!!!!!!!! What is the combined effect on net income of a $15,000 understatement error to ending inventory for the two-year period if the error is not corrected? Net income
will be overstated by $15,000. Net income will be understated by $15,000. The errors are cumulative and the total net income error will be double. The errors cancel out
and the total net income for the two periods will be correct.
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