Question
Garson Co. recorded goods in transit purchased FOB shipping point at year end as purchases. The goods were excluded from ending inventory. What effect does
Garson Co. recorded goods in transit purchased FOB shipping point at year end as purchases. The goods were excluded from ending inventory. What effect does the omission have on Garsons assets and retained earnings at year end?
Assets Retained Earnings
A. No effect Overstated
B. No effect Understated
C. Understated No effect
D. Understated Understated
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Microeconomics Theory And Applications
Authors: Edgar K. Browning, Mark A. Zupan
10th Edition
0470128917, 9780470128916
