A Company Uses the Periodic Inventory Method and the Beginning $\begin{array} { cc } &\underline { \text { Assets } } &\underline{ \text { Stockholders' Equity } }\\\end{array}$

A company uses the periodic inventory method and the beginning inventory is overstated by $7,000 because the ending inventory in the previous period was overstated by $7,000. The amounts reflected in the current end of the period balance sheet are $\begin{array} { cc } &\underline { \text { Assets } } &\underline{ \text { Stockholders' Equity } }\\\end{array}$
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) $\begin{array} { cc } \text { Overstated } && \text { Correct }\end{array}$