Question
You are reviewing your company's preliminary summary financial statements for the year which are as follows:...
You are reviewing your company's preliminary summary financial statements for the year which are as follows:
Assets $1,500,000
Liabilities $400,000
Equity $1,100,000
Net Income $200,000
After talking with the accounting department, you discover that they have not written off $50,000 worth of inventory which has become unsalable. How will the correction of this error affect the financial statements?
If you discover that they have written $50,000 that should not have been written off, how will the correction of this error affect the financial statements?
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