Understatement of Beginning Inventory Causes

Multiple Choice

Understatement of beginning inventory causes

A) Cost of goods sold to be understated and net income to be understated
B) Cost of goods sold to be understated and net income to be overstated
C) Cost of goods sold to be overstated and net income to be overstated
D) Cost of goods sold to be overstated and net income to be understated
E) Cost of goods sold to be overstated and net income to be accurate