Ending inventory for the current accounting period is overstated by $3 500. What will be the effect of this error?
A) Ending inventory for the next period will be overstated by $3 500.
B) Net profit for the current period will be overstated by $3 500.
C) Equity at the end of the next accounting period will be overstated by $3 500.
D) Cost of sales for the current period will be overstated by $3 500.
Correct Answer:
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