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When taking a physical inventory, the company inadvertently counted its inventory as $89,000 instead of the correct amount of $87,000. Indicate the effect of the
When taking a physical inventory, the company inadvertently counted its inventory as $89,000 instead of the correct amount of $87,000. Indicate the effect of the misstatement on the balance sheet of the current year.
a. Stockholders equity is understated by $2,000.
b. Assets are understated by $2,000.
c. Liabilities are overstated by $2,000.
d. Stockholders equity is overstated by $2,000.
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