Fred Received Merchandise on Consignment from Dino

Multiple Choice

Fred received merchandise on consignment from Dino.As of January 31, Fred included the goods in inventory, but did NOT record the transaction.The effect of this on Fred's financial statements for January 31 would be

A) net income, current assets, and retained earnings were understated.
B) net income was correct and current assets were understated.
C) net income, current assets, and retained earnings were overstated.
D) net income and current assets were overstated and current liabilities were understated.