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 $$\begin{array} { l c c }
& \text { Cost of Goods Sold } & \text { Net Income } \
\text { a. } & \text { Understated } & \text { Understated } \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } & \text { Overstated } \
\text { d. } & \text { Overstated } & \text { Understated }
\end{array}$$

Question

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 $$\begin{array} { l c c } 
& \text { Cost of Goods Sold } & \text { Net Income } \
\text { a. } & \text { Understated } & \text { Understated } \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } & \text { Overstated } \
\text { d. } & \text { Overstated } & \text { Understated }
\end{array}$$

Quizplus · Accepted Answer

The Answer of 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 $$\begin{array} { l c c } 
& \text { Cost of Goods Sold } & \text { Net Income } \
\text { a. } & \text { Understated } & \text { Understated } \
\text { b. } & \text { Overstated } & \text { Overstated } \
\text { c. } & \text { Understated } & \text { Overstated } \
\text { d. } & \text { Overstated } & \text { Understated }
\end{array}$$

An Error in the Physical Count of Goods on Hand