What would be the effect on an entitys profit for the year of discovering that inventory with cost of $1, 250 and a net realisable value of $1, 000 had been omitted from the original inventory valuation?

FINANCIAL ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

What would be the effect on an entity’s profit for the year of discovering that inventory with cost of $1, 250 and a net realisable value of $1, 000 had been omitted from the original inventory valuation?

A	An increase of $1, 250
B	An increase of $1, 000
C	A decrease of $250
D	No effect at all

Explanation:

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BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING