If ending inventory for the current period is understated, then owner's equity will be

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

B. understated at the end of the current period and overstated at the end of the next period.

C. overstated at the end of the current period, but it will be correct at the end of the next period.

D. overstated at the end of the current period and understated at the end of the next period.

Question

Steve Gallagher

Computers & Technology

18 August, 11:53

If ending inventory for the current period is understated, then owner's equity will be

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

B. understated at the end of the current period and overstated at the end of the next period.

C. overstated at the end of the current period, but it will be correct at the end of the next period.

D. overstated at the end of the current period and understated at the end of the next period.

+4

Answers (1)

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Kara Hodge · Answer 1

A

Explanation:

If ending inventory for the current period is understated, then owner's equity will be -

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