Multiple Choice
A company failed to record an acquisition of merchandise and its related liability, but the merchandise was included in ending inventory. The effect on the financial statements was to:
A) understate both assets and liabilities.
B) understate net income and owners' equity.
C) understate assets and owners' equity.
D) understate liabilities, and overstate both net income and owners' equity.
Correct Answer:
Verified
Correct Answer:
Verified
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