An Understatement of the Ending Inventory Balance Will Cause

Multiple Choice

An understatement of the ending inventory balance will cause:

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