Question: Ending inventory for the current period is understated. What effect will this error have on equity? A. Equity will be overstated at the end of

Ending inventory for the current period is understated. What effect will this error have on equity?

A.

Equity will be overstated at the end of the current period, but is will be correct at the end of the next period.

B.

Equity will be overstated at the end of the current period and understated at the end of the next period.

C.

Equity will be understated at the end of the current period, but it will be correct at the end of the next period.

D.

Equity will be overstated at the end of the current period and overstated at the end of the next period.

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