At an Organization That Uses a Periodic Inventory System, the Accountant

Multiple Choice

At an organization that uses a periodic inventory system, the accountant accidentally understated the organization's beginning inventory. How would the accountant's accident impact the income statement?

A) Cost of goods sold will be understated and net income will be overstated.
B) Cost of goods sold will be overstated and net income will be understated.
C) Cost of goods sold will be understated and there will be no impact on net income.
D) There will be no impact on cost of goods sold and net income will be overstated.