An Error in the Physical Count of Goods on Hand $\begin{array}{ll}\text { Cost of Goods Sold }&\text { Net Income }\\\end{array}$

question 120

Multiple Choice

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is
$\begin{array}{ll}\text { Cost of Goods Sold }&\text { Net Income }\\\end{array}$

• A)\(\begin{array}{ll}\text { Understated } & \text { \quad \quad Understated } \\\end{array}\)
• B)\(\begin{array}{ll}\text { Overstated } & \text {\quad\quad\quad Overstated } \\\end{array}\)
• C)\(\begin{array}{ll}\text { Understated } & \text {\quad\quad\quad Overstated } \\\end{array}\)
• D)\(\begin{array}{ll}\text { Overstated } & \text {\quad\quad\quad Understated }
• \end{array}\)