Wilma Received Merchandise on Consignment from Bubbles

question 205

Multiple Choice

Wilma received merchandise on consignment from Bubbles.As of January 31, Wilma included the goods in inventory, but did not record the transaction.The effect of this on Wilma'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:

Privileged Backgrounds

Refers to individuals who come from socio-economically advantaged families, providing them with opportunities and advantages that are not available to everyone.

Southern

Pertaining to or characteristic of the South, a region in the United States known for its distinct cultural, historical, and social traits.

Greensboro Sit-in

A civil rights protest in 1960 where African American students sat at a segregated Woolworth's lunch counter in Greensboro, North Carolina, demanding service.

Arms Race

A competition between nations for superiority in the development and accumulation of weapons, especially between the United States and the Soviet Union during the Cold War.