Asked by Lourdes Orellana on May 21, 2024
Verified
During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.
Physical Inventory
A process where a business counts its entire inventory by hand at a specific point in time.
Balance Sheet
A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, showing its assets, liabilities, and shareholders' equity.
Income Statement
A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.
- Determine and compute the impact of inventory inaccuracies on financial reports.
Verified Answer
Learning Objectives
- Determine and compute the impact of inventory inaccuracies on financial reports.
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