Kuzu Company discovers in 2014 that its ending inventory at December 31, 2013, was $7,000 under stated.

Question:

Kuzu Company discovers in 2014 that its at December 31, 2013, was $7,000 under stated. What effect will this error have on?
(a) 2013 net income,
(b) 2014 net income,
(c) The combined net income for the 2 years?

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 =...