A Company Uses the Periodic Inventory Method and the Beginning $\begin{array}{cc}&&\text { Assets } && \text { Owner's Equity } \\\end{array}$

Short Answer

A company uses the periodic inventory method and the beginning inventory is overstated by $9000 because the ending inventory in the previous period was overstated by $9000. The amounts reflected in the current end of the period balance sheet are $\begin{array}{cc}&&\text { Assets } && \text { Owner's Equity } \\\end{array}$
A) $\begin{array}{cc} \text { Overstated } && \text { Overstated } \\\end{array}$
B) $\begin{array}{cc}\text { Correct } &&&&\text { Correct } \end{array}$
C) $\begin{array}{cc}\text { Understated }&&\text { Understated } \end{array}$
D) $\begin{array}{cc} \text { Overstated } &&\text { Overstated } \end{array}$