Inventory errors, if not discovered, will self-correct within two years.

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alexandria curatolo · Accepted Answer

Final Answer : True, Explanation :  Inventory errors affect the cost of goods sold and ending inventory in the year they occur, but they correct themselves in the next fiscal year because the ending inventory of one year becomes the beginning inventory of the next, thus neutralizing the error over a two-year period.

Inventory errors, if not discovered, will self-correct within two years.

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