Inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders' equity?

A net income is understated, assets are understated, and stockholders' equity is overstated

B net income is overstated, assets are overstated, and stockholders' equity is overstated

C net income is understated, assets are understated, and stockholders' equity is understated

D net income is overstated, assets are overstated, and stockholders' equity is understated