Dubb CoReceived Merchandise on Consignment

question 62

Multiple Choice

Dubb Co.received merchandise on consignment.As of March 31, Dubb 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:

Humanistic Theory

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.

Existential

Pertaining to existentialism, a philosophy that emphasizes individual freedom, choice, and existence.

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgement.

Trait

A stable characteristic or quality that defines an individual's personality and influences behavior.