Suppose that XYZ shop Company recorded as a purchase certain goods that it purchased on account, with the term FOB shipping point and counted them in ending inventory before being received. The effect on the financial position is?

UN: understated, NO: NO effect, and OV: overstated 1. Cost of goods sold 2. Account payable 3. Purchases 4. Ending inventory 5. Retained earnings 6. Net income 7. Working capital 8. Current ratio