In 2017, beginning inventory is overstated. What is the effect of the error on net income in 2017 and 2018?
A) Net income is overstated in 2017 and 2018.
B) Net income is understated in 2017 and 2018.
C) Net income is understated in 2017 and overstated in 2018.
D) Net income is understated in 2017 and correctly stated in 2018.
Correct Answer:
Verified
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