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A Company failed to record the purchase of inventory on account at the end of 2008. In which of the following ways is the Balance Sheet misstated?

  1. Assets are understated and liabilities are overstated.
  2. Assets and shareholders’ equity are both understated.
  3. Assets, liabilities, and shareholders’ equity are all correctly stated.
  4. Assets and liabilities are both understated

 

MIS Auditing Financial Accounting IFRS Tally ERP
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Question added by Anil Lalwani , Chief Accountant , Al Ahli Hospital
Date Posted: 2016/10/18
Upvote (1) Views (13) Followers (3) Answers (2) Report Question
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Abdullatif Mohamed
by Abdullatif Mohamed , Chief /Senior Accountant , stme

Assets and liabilities are both understated

jayalal RS
by jayalal RS , Manager (HR, Accounts & Finance) , KJK FERTILITY AND RESEARCH CENTE

inflated profit will result

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