If an error has been made causing the a physical inventory count at the end of 20X4 to be incorrect, causing inventory to be understated, how does it affect the following accounts in 20X4?

If an error has been made causing the a physical inventory count at the end of 20X4 to be incorrect, causing inventory to be understated, how does it affect the following accounts in 20X4?




- BI:
- NP:
- EI:
- COGS:
- NI:
- Inventory
- RE:
- AP:


20X4:


- BI: n/e
- NP: n/e
- EI: understated
- COGS: overstated
- NI: understated
- Inventory: understated
- RE: understated
- AP: n/e


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