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Question 37 1 pts Read the following description; and answer the following question: While auditing...

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Question 37 1 pts Read the following description; and answer the following question: While auditing the business & accounting records, you have noticed that one inventory purchase was erroneously recorded at $5,000 when the actual purchase amount was $1,500. All other records have been recorded correctly. Is the following statement True or False related to this error? 37. Your Income Statement must have shown inflated the profit by $3,500. In other words, profit amount was overstated. O True O False Question 38 1 pts The following is the same description as in the question 37. Please read it again; and answer the following question: While auditing the business & accounting records, you have noticed that one inventory purchase was erroneously recorded at $5,000 when the actual purchase amount was $1,500. All other records have been correctly recorded is the following statement True or False related to this error? 38. Your Balance Sheet must have shown Current Asset inflated by $3,500. In other words, Total Current Asset amount was overstated by $3,500. True O False

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