Which of the Following Is Correct When,in the Same Year,beginning

question 80

Multiple Choice

Which of the following is correct when,in the same year,beginning inventory is understated by $1,300 and ending inventory is understated by $700?

• A)Net income is understated by $600.
• B)Net income is understated by $2,000.
• C)Net income is overstated by $600.
• D)Net income is overstated by $2,000.