If Ending Inventory Is Understated for Year 1,then in Year

Multiple Choice

If ending inventory is understated for Year 1,then in Year 2:

A) cost of goods sold and gross profit will both be understated.
B) cost of goods sold and gross profit will both be overstated.
C) cost of goods sold will be overstated and gross profit will be understated.
D) cost of goods sold will be understated and gross profit will be overstated.