David Gordon Is an Accountant for Bronte Ltd B) C)

Multiple Choice

David Gordon is an accountant for Bronte Ltd.At the end of the year he realised that ending inventory was overstated but the purchases account was recorded correctly.What is the effect of correcting the above error in the statement of comprehensive income and statement of financial position (inventory) accounts of Bronte Ltd?

A)
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Increase } & \text { Increase } \\\hline\end{array}$$
B)
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Decrease } & \text { Increase } \\\hline\end{array}$$
C)
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Decrease } & \text { Decrease } \\\hline\end{array}$$
D)
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Increase } & \text { Decrease } \\\hline\end{array}$$