Question

If ending inventory for the current period is understated, then owner’s equity will be

A. understated at the end of the current period, but it will be correct at the end of the next period.

B. understated at the end of the current period and overstated at the end of the next period.

C. overstated at the end of the current period, but it will be correct at the end of the next period.

D. overstated at the end of the current period and understated at the end of the next period.

Answer 1

Answer:

A

Explanation:

If ending inventory for the current period is understated, then owner’s equity will be -

understated at the end of the current period, but it will be correct at the end of the next period.