Hi There,
I have a question regarding the ramifications of not recording inventories purchased.
my question is.... if a client fails to record the purchase of inventory acquired on credit. The inventory and related creditors accounts should have been recorded but were not.
What will the effect this error will have on the following Assets, liabilities or Net Profit would one of the following be Understated / Overstated / No Effect
I have a question regarding the ramifications of not recording inventories purchased.
my question is.... if a client fails to record the purchase of inventory acquired on credit. The inventory and related creditors accounts should have been recorded but were not.
What will the effect this error will have on the following Assets, liabilities or Net Profit would one of the following be Understated / Overstated / No Effect