Multiple Choice
Atomic Company did not record a December 2019 purchase of inventory on credit until January 2020.Assume that the December 31,2019 ending inventory was correctly determined.
- What is the effect of this error on the financial statements for the year ended December 31,2020?
A) Net income is correct.
B) Stockholders' equity is correct.
C) Net income is overstated.
D) Stockholders' equity is overstated.
Correct Answer:
Verified
Correct Answer:
Verified
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