A company uses the periodic inventory method and the beginning inventory is overstated by $9000 because the ending inventory in the previous period was overstated by $9000. The amounts reflected in the current end of the period balance sheet are $\begin{array}{cc}&&\text { Assets } && \text { Owner's Equity } \\\end{array}$
A) $\begin{array}{cc} \text { Overstated } && \text { Overstated } \\\end{array}$
B) $\begin{array}{cc}\text { Correct } &&&&\text { Correct } \end{array}$
C) $\begin{array}{cc}\text { Understated }&&\text { Understated } \end{array}$
D) $\begin{array}{cc} \text { Overstated } &&\text { Overstated } \end{array}$

Question

A company uses the periodic inventory method and the beginning inventory is overstated by $9000 because the ending inventory in the previous period was overstated by $9000. The amounts reflected in the current end of the period balance sheet are    Assets   Owner’s Equity  \begin{array}{cc} & & 	ext { Assets }  & &  	ext { Owner ' s Equity } \\end{array} ​ ​  Assets  ​ ​  Owner’s Equity  ​ A)   Overstated   Overstated  \begin{array}{cc} 	ext { Overstated }  & &  	ext { Overstated } \\end{array}  Overstated  ​ ​  Overstated  ​ B)   Correct   Correct  \begin{array}{cc}	ext { Correct }  & & & & 	ext { Correct } \end{array}  Correct  ​ ​ ​ ​  Correct  ​ C)   Understated   Understated  \begin{array}{cc}	ext { Understated } & & 	ext { Understated } \end{array}  Understated  ​ ​  Understated  ​ D)   Overstated   Overstated  \begin{array}{cc} 	ext { Overstated }  & & 	ext { Overstated }  \end{array}  Overstated  ​ ​  Overstated  ​

Callee Bigham · Accepted Answer

Final Answer : B

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