In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an increase in Accounts Payable. As a result, on the January balance sheet, a.Retained Earnings was overstated. b.Total assets were understated. c.Accounts Payable was understated. d.Total liabilities were understated. e.Inventories were overstated. f.Cash was understated.

Tries 0/99