If the Inventory Reported on a Gottleib Company's Statement of Financial

Multiple Choice

If the inventory reported on a Gottleib Company's statement of financial position at December 31,2010 is overstated by $€ 1,200,000$ , the company's retained earnings balance at December 31, 2011 will be

A) understated by $€ 1,200,000$ .
B) correct.
C) overstated by $€ 1,200,000$ .
D) need more information to determine.