A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year.
What was the impact to the organization’s financial statements?
A . Cost of sales and net income are understated
B . Cost of sales and net income are overstated
C . Cost of sales is understated and net income is overstated.
D . Cost of sales is overstated and net income is understated.
Answer: C