2. The September 30 physical inventory of a hospital properly included $13,000 of supplies that were not recorded as pur- chases until October. What effect will this error have on Septem- ber 30 assets, liabilities, net assets (fund balance), and excess of revenues over expenses for the year then ended, respectively?

   1. a. No effect; overstate; understate; understate.

   2. b. No effect; understate; understate; overstate.

   3. c. Understate; no effect; overstate; overstate.

   4. d. No effect; understate; overstate; overstate.