Question: A $ 4 5 , 0 0 0 overstatement of the 2 0 2 4 ending inventory was discovered after the financial statements for 2

A $45,000 overstatement of the 2024 ending inventory was discovered after the financial statements for 2024 were prepared. Which of the following describes the effect of the inventory error on the2024financial statements?
Group of answer choices
Current assets were overstated and net income was understated.
Current assets were understated and net income was understated.
Current assets were overstated and net income was overstated.
Current assets were understated and net income was overstated.

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