If a Company Receives Goods but Waits to Record the Transaction

Multiple Choice

If a company receives goods but waits to record the transaction until a vendor's invoice is received, _______.

A) purchases and accounts payable will be understated
B) purchases and accounts payable will be overstated
C) purchases will be overstated and accounts payable will be understated
D) purchases will be understated and accounts payable will be overstated