If Beginning Inventory Is Understated by $13,000, the Effect of This

Short Answer

If beginning inventory is understated by $13,000, the effect of this error in the current period is $\text { Cost of Goods Sold\quad Net Income }$
a. Understated $\quad$$\quad$$\quad$$\quad$$\quad$ Understated
b. Overstated $\quad$$\quad$$\quad$$\quad$$\quad$ Overstated
c. Understated $\quad$$\quad$$\quad$$\quad$$\quad$ Overstated
d. Overstated $\quad$$\quad$$\quad$$\quad$$\quad$ Understated