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Why would liabilities be understated though? What does inventory/COGS have to do with liabilities?
if inventory understated gross profit will be understated and it leads to net income understated right??
If ending inventory is understated, COGS is overstated, which leads to an understatement of net income
Why would liabilities be understated though? What does inventory/COGS have to do with liabilities?
if inventory understated gross profit will be understated and it leads to net income understated right??
If ending inventory is understated, COGS is overstated, which leads to an understatement of net income