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:

Loans

Money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest or other finance charges.

Market Averages

Statistical measures that provide a snapshot of the overall movement and health of the stock market, typically represented by indices like the Dow Jones Industrial Average.

Parents Involved

Refers to the landmark Supreme Court case "Parents Involved in Community Schools v. Seattle School District No. 1," which addressed issues of racial integration and affirmative action in schools.

Seattle School District

A public school district serving the city of Seattle, Washington, responsible for the education of children in kindergarten through 12th grade.