Question
What is the effect on net income for the current year if a company fails to record a purchase of materials in transit (FOB shipping
What is the effect on net income for the current year if a company fails to record a purchase of materials in transit (FOB shipping point) but includes the materials in physical inventory at year-end?
a.) Net income is unaffected.
b.) Not enough information is provided to determine the answer.
c.) Net income is understated.
d.) Net income is overstated.
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Corporate Financial Strategy
Authors: Ruth Bender
4th Edition
1136181105, 9781136181108
