Merchandise inventory at the end of the year was inadvertently overstated. which of the following statements correctly states the effect of the error on net income, assets, and owner's equity? net income is overstated, assets are overstated, and owner's equity is understated net income is understated, assets are understated, and owner's equity is overstated net income is understated, assets are understated, and owner's equity is understated net income is overstated, assets are overstated, and owner's equity is overstated