While finalizing the current years accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

A. Previous years profit is overstated and current years profit is also overstated.

B. Previous years profit is overstated and current years profit is understated.

C. There will be no impact on the profit of either the previous year or the current year.

D. Previous years profit is understated and current years profit is overstated.

Found an error? Read our corrections policy and report it in the comments below.

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.