If beginning inventory is understated by $13,000, the effect of this error in the current period is $\text { Cost of Goods Sold\quad Net Income }$
a. Understated$\quad$$\quad$$\quad$$\quad$$\quad$Understated
b. Overstated$\quad$$\quad$$\quad$$\quad$$\quad$Overstated
c. Understated$\quad$$\quad$$\quad$$\quad$$\quad$Overstated
d. Overstated$\quad$$\quad$$\quad$$\quad$$\quad$Understated

Question

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The Answer of If beginning inventory is understated by $13,000, the effect of this error in the current period is $\text { Cost of Goods Sold\quad Net Income }$
a. Understated$\quad$$\quad$$\quad$$\quad$$\quad$Understated
b. Overstated$\quad$$\quad$$\quad$$\quad$$\quad$Overstated
c. Understated$\quad$$\quad$$\quad$$\quad$$\quad$Overstated
d. Overstated$\quad$$\quad$$\quad$$\quad$$\quad$Understated

If Beginning Inventory Is Understated by $13,000, the Effect of This