b . only in the cost of goods sold section of the income statement .
c . as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet .
d . as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet .
P40 . If the beginning inventory for 2012 is overstated , the effects of this error on cost of goods sold for 2012 , net income for 2012 , and assets at December 31 , 2013 , respectively , are
a . overstatement , understatement , overstatement .
b . overstatement , understatement , no effect .
c . understatement , overstatement , overstatement .
d . understatement , overstatement , no effect .