A Company Uses the Periodic Inventory Method and the Beginning $\quad$

A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000.The amounts reflected in the current end of the period balance sheet are
$\quad$$\quad$ Assets $\quad$$\quad$ Stockholders' Equity

A) $\quad$ Overstated $\quad$ Overstated
B) $\quad$ Correct $\quad$$\quad$$\quad$ Correct
C) $\quad$ Understated $\quad$ Understated
D) $\quad$ Overstated $\quad$$\quad$ Correct