If the ending inventory is understated, then the beginning inventory of the next period will be overstated.

Name: If the ending inventory is understated, then the beginning inventory of the next period will be overstated.
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Quizplus · Accepted Answer

The beginning inventory of the next period is the same as the ending inventory of the previous period, so if the ending inventory is understated, the beginning inventory of the next period will also be understated, not overstated.

If the Ending Inventory Is Understated, Then the Beginning Inventory