Accounting & Bookkeeping & Small Business Forum

[carlos3082]

hi,
I'm taking an accounting class and i'm having a difficult time trying to answer the following problem.

Error in inventory

During 2008, the accountant discovered that the physical inventory at the end of 2007 had been understated by $8,175. Instead of correcting the error, however, the accountant assumed that an $8,175 overstatement of the physical inventory in 2008 would balance out the error.

Are there any flaws in the accountant's assumption? Explain.


can someone please help me answer and understand this problem? any input will be greatly appreciated

[irsfixer]

carlos3082 wrote: hi,
I'm taking an accounting class and i'm having a difficult time trying to answer the following problem.

Error in inventory

During 2008, the accountant discovered that the physical inventory at the end of 2007 had been understated by $8,175. Instead of correcting the error, however, the accountant assumed that an $8,175 overstatement of the physical inventory in 2008 would balance out the error.

Are there any flaws in the accountant's assumption? Explain.


can someone please help me answer and understand this problem? any input will be greatly appreciated

If you want to provide an answer and have us critique it for you, be happy to. Doing your homework for you will not do you any good.

[asnider]

you have to admit, it's a pretty good trick to use online forums to answer homework questions......i wish there were online forums when i was in school!!!