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 statement of financial position are
$\begin{array}{ll}\text {\quad\quad Assets }&\text {\quad\quad Equity }\\end{array}$

Question

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 statement of financial position are 
$\begin{array}{ll}\text {\quad\quad Assets }&\text {\quad\quad Equity }\\end{array}$

Quizplus · Accepted Answer

The overstatement of the beginning inventory is offset by the same overstatement in the previous period's ending inventory, resulting in no net effect on the current period's financial position.

A Company Uses the Periodic Inventory Method and the Beginning Assets Equity \begin{array}{ll}\text {\quad\quad Assets }&\text {\quad\quad Equity }\\\end{array}Assets ​Equity ​

A Company Uses the Periodic Inventory Method and the Beginning $\begin{array}{ll}\text {\quad\quad Assets }&\text {\quad\quad Equity }\\\end{array}$