Once the financial statements for the year ended 30 April 2022 were completed, a trader found that closing inventory had been overstated. What effect will this error have?
- AProfit for the year ended 30 April 2022 overstated; capital on 30 April 2022 overstated; profit for the year ending 30 April 2023 understated
- BProfit for the year ended 30 April 2022 overstated; capital on 30 April 2022 understated; profit for the year ending 30 April 2023 no effect
- CProfit for the year ended 30 April 2022 understated; capital on 30 April 2022 no effect; profit for the year ending 30 April 2023 no effect
- DProfit for the year ended 30 April 2022 understated; capital on 30 April 2022 understated; profit for the year ending 30 April 2023 overstated