If beginning inventory is understated by $10,000, the effect of this error in the current period is $\begin{array}{lcl}
& \text {\underline{\text{ Cost of Goods Sold }} } & \text {\underline{\text{ Net Income }} } \
\text { a. } & \text { Understated } & \text { Understated } \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } & \text { Overstated } \
\text { d. } & \text { Overstated } & \text { Understated } \
&
\end{array}$

Question

If beginning inventory is understated by $10,000, the effect of this error in the current period is $\begin{array}{lcl} 
& \text {\underline{\text{ Cost of Goods Sold }}    } & \text {\underline{\text{ Net Income }}   } \
\text { a. } & \text { Understated } & \text { Understated }  \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } &  \text { Overstated } \
\text { d. } & \text { Overstated } &  \text { Understated } \
&
\end{array}$

Quizplus · Accepted Answer

The Answer of If beginning inventory is understated by $10,000, the effect of this error in the current period is $\begin{array}{lcl} 
& \text {\underline{\text{ Cost of Goods Sold }}    } & \text {\underline{\text{ Net Income }}   } \
\text { a. } & \text { Understated } & \text { Understated }  \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } &  \text { Overstated } \
\text { d. } & \text { Overstated } &  \text { Understated } \
&
\end{array}$

If Beginning Inventory Is Understated by $10,000, the Effect of This