A company mistakenly excludes goods bought on credit from its closing inventory and also fails to record the purchase of those goods in its accounting records. Which of the following would be understated?
Select one: A. Current assets B. Gross profit C. Cost of sales D. Net assets E. Working capital
Please do not simply type out test questions and expected to be provided with an answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.