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How are errors in inventory between physical counts and the perpetual impact the income statement? O O B. A shortage in physical counts reduces current assets. OC. A shortage in Inventory increases the cost of goods sold. D. A shortage in inventory increases net income. A. An inventory shortage in inventory reduces cost of goods sold. O

How are errors in inventory between physical counts and the perpetual impact the income statement? O O B. A shortage in physical counts reduces current assets. OC. A shortage in Inventory increases the cost of goods sold. D. A shortage in inventory increases net income. A. An inventory shortage in inventory reduces cost of goods sold. O

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 12CYBK
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How are errors in inventory between physical counts and the perpetual impact the income statement? O O O O A. An inventory shortage in Inventory reduces cost of goods sold. B. A shortage in physical counts reduces current assets. C. A shortage in Inventory increases the cost of goods sold. D. A shortage in inventory increases net income.
Transcribed Image Text:How are errors in inventory between physical counts and the perpetual impact the income statement? O O O O A. An inventory shortage in Inventory reduces cost of goods sold. B. A shortage in physical counts reduces current assets. C. A shortage in Inventory increases the cost of goods sold. D. A shortage in inventory increases net income.
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