If beginning inventory is understated by $15000 the effect of this error in the current period is $\begin{array}{cc}\text{ Cost of Goods Sold }& \text{ Net Incom }\end{array}$

A) $\begin{array}{ccc}\text{ Understated }& & \text{ Understated }\end{array}$
B) $\begin{array}{cccc}\text{ Over stand }& & & \text{ Over stand }\end{array}$
C) $\begin{array}{cccc}\text{ Understated }& & & \text{ Over stand }\end{array}$
D) $\begin{array}{cccc}\text{ Over stand }& & & \text{ Understated }\end{array}$

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the preceding period.

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.