The effect of the error on the financial statements, if not detected, would include the following EXCEPT:
A. The purchases in the financial statements will be overstated.
B. The inventory of the outfit will be understated.
C. The profit of the outfit will be understated.
D. The non-current assets account will be understated.
E. The inventory will be overstated.

Answer: E
Explanation:
This type of error would affect the purchases, profit, and non-current asset values but not the inventory. Hence, option E is incorrect.