Belle CoReceived Merchandise on Consignment

question 41

Multiple Choice

Belle Co.received merchandise on consignment.As of March 31, Belle had recorded the transaction as a purchase and included the goods in inventory.The effect of this on its financial statements for March 31 would be

• A)no effect.
• B)net income was correct and current assets and current liabilities were overstated.
• C)net income, current assets, and current liabilities were overstated.
• D)net income and current liabilities were overstated.

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Definitions:

German Servants

Individuals of German origin who worked as indentured servants, often in the Americas, agreeing to a fixed term of unpaid labor in exchange for passage to the New World, food, accommodation, and eventual freedom.

Frontier Settlers

Individuals or families who moved to the edge of settled territories to establish a new life, often facing harsh conditions and conflicts with indigenous people.

Anti-Federalists

Opponents of the ratification of the U.S. Constitution in 1787-1788, who favored stronger state governments and feared a too powerful federal government.

Proclamation of 1763

Royal directive issued after the French and Indian War prohibiting settlement, surveys, and land grants west of the Appalachian Mountains; caused considerable resentment among colonists hoping to move west.