In 2015,beginning inventory is overstated.What is the effect of the error on net income in 2015 and 2016?
A) net income is overstated in 2015 and 2016
B) net income is understated in 2015 and 2016
C) net income is understated in 2015 and overstated in 2016
D) net income is understated in 2015 and correctly stated in 2016
Correct Answer:
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