Question

Euler Company made an inventory count on December 31, 2014. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, the effects of this error are
A) overstated understated overstated
B) understated no effect understated
C) overstated no effect overstated
D) overstated overstated understated

Answer 1

Answer:

C

Explanation:

Euler Company made an inventory count on December 31, 2014. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, the effects of this error are overstated no effect overstated

This means the asset is overstate, no effect on liabilities and Euler Company 's equity is overstated