Fred Received Merchandise on Consignment from Dino

question 85

Multiple Choice

Fred received merchandise on consignment from Dino.As of January 31, Fred included the goods in inventory, but did NOT record the transaction.The effect of this on Fred's financial statements for January 31 would be

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

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Definitions:

Dependence Training

An educational and socialization process aiming to foster a level of dependency among individuals on their social group for emotional support, survival, or decision-making.

Subsistence Economy

An economic system where communities primarily focus on producing or obtaining enough resources to meet their immediate needs, with little or no surplus for trade.

Childrearing

The process of bringing up and caring for children, including their physical, emotional, educational, and social development.

Obedience

Compliance with orders or requests from authority figures, or adherence to societal norms and laws.