In 2015,ending inventory is overstated.What is the effect of the error on total stockholders' equity in 2015 and 2016?
A) total stockholders' equity is overstated in 2015 and 2016
B) total stockholders' equity is understated in 2015 and 2016
C) total stockholders' equity is overstated in 2015 and correctly stated at the end of 2016
D) total stockholders' equity is overstated in 2015 and understated in 2016
Correct Answer:
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