Cross CoAccepted Delivery of Merchandise Which It Purchased on Account

question 33

Multiple Choice

Cross Co.accepted delivery of merchandise which it purchased on account.As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory.The effect of this on its financial statements for December 31 would be

• A)net income, current assets, and retained earnings were understated.
• B)net income was correct and current assets were understated.
• C)net income was understated and current liabilities were overstated.
• D)net income was overstated and current assets were understated.

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Definitions:

Technical Skills

Specific abilities or knowledge in vocational or technical areas, enabling practical tasks or problem-solving within specific domains.

Management Skills

The abilities and competencies that enable an individual to manage people, projects, and organizations effectively.

Self-Sabotage

Behavior or thought patterns that hinder personal success or the achievement of goals.

Procrastination

The action of delaying or postponing tasks, often leading to stress, anxiety, and lower productivity.