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MomCorp uses the periodic inventory system. What is the impact on MomCorp's current ratio if goods in transit are Free on Board (FOB) shipping point

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MomCorp uses the periodic inventory system. What is the impact on MomCorp's current ratio if goods in transit are Free on Board (FOB) shipping point in purchases, rather than in the ending inventory? The current ratio is not affected. Understate the current ratio Overstate the current ratio Insufficient data to assess the effects on MomCorp's current ratio

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