Accounting MCQ Inventory Valuation of LCNRV & LCM Method Assume a company recorded the purchase of inventory on account twice instead of once in its accounting system. Assuming its ending inventory is correctly stated, what will be the effect, if any, on net income in the year the error first occurred?

Assume a company recorded the purchase of inventory on account twice instead of once in its accounting system. Assuming its ending inventory is correctly stated, what will be the effect, if any, on net income in the year the error first occurred?

Naim 22:57 Inventory Valuation of LCNRV & LCM Method

Assume a company recorded the purchase of inventory on account twice instead of once in its accounting system. Assuming its ending inventory is correctly stated, what will be the effect, if any, on net income in the year the error first occurred?

a. Net income will be understated.
b. Net income will not be affected.
c. Net income will be overstated.

Answer: a. Net income will be understated.

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Accounting MCQ

Assume a company recorded the purchase of inventory on account twice instead of once in its accounting system. Assuming its ending inventory is correctly stated, what will be the effect, if any, on net income in the year the error first occurred?

Assume a company recorded the purchase of inventory on account twice instead of once in its accounting system. Assuming its ending inventory is correctly stated, what will be the effect, if any, on net income in the year the error first occurred?

Learn More :

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