Your client calls you to figure out why he suddenly has an a

Your client calls you to figure out why he suddenly has an amount showing in his balance sheet for Opening Balance Equity. Which of the following errors could he have made that would result in a balance existing in the Opening Balance Equity account?

Solution

ANSWER:

This occurs when the company has received a new inventory on a bill without the purchase order. Thus has an amount suddenly showing in his balance sheet for Opening Balance Equity