Question $14$

Ending inventory for the year ended December $31,2019,$ is understated by $$23,000.$ How

will this error affect net income for $2020?$

Net income will be overstated by $$23,000.$

Net income will be understated by $$46,000.$

Net income will be understated by $$23,000.$

Net income will be overstated by $$46,000.$