Dolan Co Received Merchandise on Consignment

question 121

Multiple Choice

Dolan Co. received merchandise on consignment. As of March 31, Dolan 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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