On June 15, 2010, Wynne Corporation Accepted Delivery of Merchandise

question 31

Multiple Choice

On June 15, 2010, Wynne Corporation accepted delivery of merchandise which it
Purchased on account.As of June 30, Wynne had not recorded the transaction or included the merchandise in its inventory.The effect of this on its statement of financial position for June 30, 2010 would be

• A)assets and equity were overstated but liabilities were not affected.
• B)equity was the only item affected by the omission.
• C)assets, liabilities, and equity were understated.
• D)none of these.

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Definitions:

Unemployment Rate

The ratio of individuals in the labor force who are without a job and are searching for employment.

Expected Inflation

The rate at which the general level of prices for goods and services is projected to rise over a specific period, reflecting the public's expectations for future inflation.

Actual Inflation

The observed increase in prices for goods and services in an economy over a period, typically measured as a percentage.

Unemployment Rate

The unemployment rate is the percentage of the labor force that is jobless and actively looking for employment.