Zammit Watches reports net income of 90,000 in 2020. However, ending inventory was understated 5,000. What is

Question:

Zammit Watches reports net income of €90,000 in 2020. However, ending inventory was understated €5,000. What is the correct net income for 2020? What effect, if any, will this error have on total assets as reported in the statement of financial position at December 31, 2020?

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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