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What is a distinguishing feature of an inventory errors impact on cumulative net income for the current and next years? Total net income is correct
What is a distinguishing feature of an inventory errors impact on cumulative net income for the current and next years?
Total net income is correct because the errors offset each other.
The impact of the error is cumulative; thus, the net income error is doubled.
Net income continues to be incorrect unless a journal entry is made to correct the error.
Net income will only be impacted after two years if a periodic inventory count is not completed.
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