If Beginning Inventory Is Understated by $10,000, the Effect of This

Multiple Choice

If beginning inventory is understated by $10,000, the effect of this error in the current period is
Cost of Goods Sold $\quad$ Profit

A) Understated $\quad$$\quad$ Understated
B) Overstated $\quad$$\quad$ Overstated
C) Understated $\quad$$\quad$ Overstated
D) Overstated $\quad$$\quad$ Understated