Wilma Received Merchandise on Consignment from Betty

Multiple Choice

Wilma received merchandise on consignment from Betty. As at March 31, Wilma had recorded the transaction as a purchase and included the goods in inventory. The effect of this on Wilma's financial statements for March 31 would be

A) net income was correct and current assets and current liabilities were overstated.
B) net income, current assets, and current liabilities were overstated.
C) net income and current liabilities were overstated.
D) no effect.