Question
If both ending inventory and purchases are understated by $10,000 at the end of the year, how are COGS, net income, and retained earnings affected
If both ending inventory and purchases are understated by $10,000 at the end of the year, how are COGS, net income, and retained earnings affected in the current year? Can you please explain why, im having a bit of trouble understanding the current year effect in inventory (B.I, PURCHASES, GAS, E.I, COGS).
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Financial Accounting And Reporting
Authors: John McKeith, Bill Collins
2nd Edition
0077138368, 978-0077138363
