Queener Corporation Uses a Periodic Inventory System and Neglected to Record

Multiple Choice

Queener Corporation uses a periodic inventory system and neglected to record a purchase of merchandise on account at year-end.This merchandise was omitted from the year-end physical count.How will these errors affect Queener's assets,liabilities,and stockholders' equity at year-end and net earnings for the year? Stockholders'
Assets Liabilities Equity Net Earnings

A) Understate Understate No effect No effect
B) Understate No effect Understate Understate
C) No effect Understate Overstate Overstate
D) No effect Overstate Understate Understate