Goods in transit at year-end purchased FOB shipping point were appropriately recorded in the purchases account but were incorrectly excluded from the ending inventory. What effect will this omission have on the company's assets, liabilities, and retained earnings at year-end?

a. No effect, no effect, overstated
b. No effect, no effect, understated
c. Understated, no effect, overstated
d. Understated, no effect, understated


D

Business

You might also like to view...

The probability of an event is the _____ of the probabilities of the sample points in the event.

A. sum  B. product C. minimum D. maximum

Business

When companies operate with leaner staffs, they tend to give many young technical and professional employees new responsibilities typically reserved for workers with more seniority

Indicate whether the statement is true or false.

Business

Failure by the trial judge to admit or exclude certain evidence, improper instructions being given to the jury, and the granting or denying of motions to dismiss the case are all:

a. bases for appeal b. bases for summary judgment c. bases for responsive judgment d. bases for voir dire judgment e. bases for ultimate judgment

Business

Your decision on what type of annuity to purchase will have a dramatic impact on the monthly payments you will receive upon retirement

Indicate whether this statement is true or false.

Business