An Inventory Acquisition Is Received Late in the Afternoon of December

Multiple Choice

An inventory acquisition is received late in the afternoon of December 31 after the physical inventory is completed. If the acquisition is included in accounts payable and purchases, but excluded from inventory, the result:

A) is an overstatement of net earnings.
B) does not affect earnings.
C) is indeterminable from the information given.
D) is an understatement of net earnings.