A Company Uses the Perpetual Inventory Method and the Beginning $\quad$

Multiple Choice

A company uses the perpetual inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000. The amounts reflected in the current end of the period balance sheet are

$\quad$ Assets $\quad$$\quad$ Owner's Equity

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