Wilma Received Merchandise on Consignment from Betty

question 58

Multiple Choice

Wilma received merchandise on consignment from Betty.As of March 31, Wilma had recorded the transaction as a purchase and included the goods in inventory.The effect of this on Wilma's financial statements for March 31 would be

• A)net income was correct and current assets and current liabilities were overstated.
• B)net income, current assets, and current liabilities were overstated.
• C)net income and current liabilities were overstated.
• D)no effect.

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Definitions:

Semiannually

Happening biannually or once every six months.

Par Value

A nominal value assigned to a security by the issuer, which represents its legal capital.

Current Price

Current price typically refers to the present market price of a stock, bond, commodity, or any other financial asset, reflecting its worth based on supply and demand dynamics.

Coupon Rate

The yearly interest rate a bond yields, represented as a percentage of its par value.