Question
Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The
Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The effect of this error on 2024s cost of goods sold (COGS) and net income (NI), respectively are:
A) COGS understated and NI understated
B) COGS overstated and NI overstated
C) COGS overstated and NI understated
D) COGS understated and NI overstated
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Auditing Theory And Practice
Authors: Arun Kumar & Rachana Sharma
1st Edition
8171567207, 978-8171567201
