If the Beginning Inventory for 2015 Is Overstated, the Effects

Multiple Choice

If the beginning inventory for 2015 is overstated, the effects of this error on cost of goods sold for 2015, net income for 2015, and assets at December 31, 2016, respectively, are

A) overstatement, understatement, overstatement.
B) overstatement, understatement, no effect.
C) understatement, overstatement, overstatement.
D) understatement, overstatement, no effect.