Quiz – Overstated Inventory

In Year 1, a company overstated its ending inventory by $60,000. However, the error was not discovered until Year 3. In Year 2, the company made no errors. Once the company found the error in Year 3, management restated the balance sheets for Year 1 and Year 2 by lowering the reported ending inventory in both Year 1 and Year 2 by $60,000. Which of these statements is for Year 2?

Experts Have Solved This Problem

Please login or register to access this content.

  • Search Terms: $,, $,. $,. no $,. the , . ? only adjustments after amount amounts and are balance be both by company decreased discovered earnings ending error errors finding following for in increased instead inventory is its made management needed needs no not of or overstated provides reducing reported restated retained sheets should statements the to until was were which year   a
  • The use of this software is to provide check figures to compare against your own individual work. Accuracy of the check figures is not guaranteed. By purchasing credits and using our software/services, you assume all liability for the use of the software and affirm that you are abiding by your university’s academic policies. Please report any errors above.