Green Co Received Merchandise on Consignment

question 143

Multiple Choice

Green Co. received merchandise on consignment. As of January 31, Green included the goods in inventory, but did not record the transaction. The effect of this on its financial statements for January 31 would be

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

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Definitions:

Company Expectations

The standards and objectives set by a business that it expects its employees and operations to meet.

Plagiarism

The act of using someone else's work or ideas without proper attribution, considered as a serious academic and creative offense.