In its physical inventory count at its March 31, 2014, year end, Backspring Corporation excluded inventory that

Question:

In its physical inventory count at its March 31, 2014, year end, Backspring Corporation excluded inventory that was being held on consignment for Backspring by another company. The merchandise was sold in the next year and the inventory was correctly stated at March 31, 2015.

Instructions

Ignoring income tax, indicate the effect of this error (overstated, understated, or no effect) on each of the following at year end:

In its physical inventory count at its March 31, 2014,

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...