Match Each Situation to Its Impact (A-C) on the Current

question 37

Multiple Choice

Match each situation to its impact (a-c) on the current year's net income.
-Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.

• A)Net income for the current year will be overstated.
• B)Net income for the current year will be understated.
• C)There will be no error effect on net income.

---

Definitions:

Words and Ideas

The concepts and thoughts that are expressed or conveyed through language.

Sentence

A group of words that forms a complete unit, usually having a subject and a verb, and expressing a complete thought, such as a statement, question, exclamation, or command.

Effective Writing

The process of composing text that is clear, compelling, and purposeful, successfully conveying the intended message to its readers.

Adaptation

The process of adjusting or changing to suit new conditions or environments.