If a purchase on credit is omitted from both the purchases account and ending inventory of the

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If a purchase on credit is omitted from both the purchases account and ending inventory of the current year and is not recorded in the succeeding year

the income statement is correct because the errors in the purchases and ending inventory offset each other.

the income statement is Incorrect. because one error carries over to the second error.

the balance sheet shows ending inventory as understated and accounts payable as overstated.

the balance sheet shows ending inventory and accounts payable are overstated.

Related Book For answer-question

Financial Accounting

ISBN: 978-1133952428

12th Edition

Authors: Warren, Reeve, Duchac

Posted Date: Oct 17, 2020 09:08 PM

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If a purchase on credit is omitted from both the purchases account and ending inventory of the

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Financial Accounting

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