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Forgetful Ltd has just discovered that its closing inventory has been understated by 25,500. ...

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Accounting

Forgetful Ltd has just discovered that its closing inventory has been understated by 25,500.
What will be the effect of this error if it remains uncorrected?
A. The current years profit will be understated and there will be no effect on next years profit.
B. The current years profit will be overstated and next years profit will be understated.
C. The current years profit will be understated and next years profit will be overstated.
D. The current years profit will be overstated and there will be no effect on next years profit.

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