Axelrods Inc A)Option a
B)Option B
C)Option C
D)Option D

question 91

Multiple Choice

Axelrods Inc.uses a perpetual inventory system.In Dec 2013, the accountant neglected to record a purchase of merchandise on account at year end.This merchandise was also omitted from the year-end physical count.How will this error affect assets, liabilities, and shareholders' equity at year end and net income for the year? $\begin{array}{llll}&\text { Assets } & \text { Liabilities } & \text { Shareholders' Equity }& \text { Net Income }\\\hlineA.&\text { No effect } & \text { Understated } & \text { Overstated } & \text { Overstated. } \\B.&\text { No effect } & \text { Overstated } & \text { Understated } & \text { Understated. } \\C.&\text { Understated } & \text { Understated } & \text { No effect } & \text { No effect. } \\D.&\text { Understated } & \text { No effect } & \text { Understated } & \text { Understated }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Jonathan Marks

An anthropologist known for his work in the fields of genetics, anthropology, and the critical study of science, often questioning mainstream genetic explanations of human diversity.

Caveat Emptor

A legal principle meaning "let the buyer beware," implying that the buyer assumes the risk regarding quality or condition of the item purchased.

Ladino

A language, also known as Judeo-Spanish, spoken by descendants of Sephardic Jews who were expelled from Spain in 1492.

Central America

A geographical region in the Americas comprised of seven countries located between Mexico and South America.