It is discovered in 2013 that ending inventory in 2011 was understated. What is the effect of

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It is discovered in 2013 that ending inventory in 2011 was understated. What is the effect of the understatement on the following?

2011:

Cost of goods sold

Net income

Ending retained earnings

2012:

Net purchases

Cost of goods sold

Net income

Ending retained earnings

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Question Posted: Dec 23, 2013 10:30 AM

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It is discovered in 2013 that ending inventory in 2011 was understated. What is the effect of

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Intermediate accounting

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