Multiple Choice
If ending inventory for the year ended December 31, 2011, is understated, this error will cause owners' equity to be:
A) overstated at the end of 2011 and understated at the end of 2011.
B) understated at the end of 2011 and overstated at the end of 2012.
C) overstated at the end of 2011 and correctly stated at the end of 2011.
D) understated at the end of 2011 and correctly stated at the end of 2011.
Correct Answer:
Verified
Correct Answer:
Verified
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