An Inventory Acquisition Is Received Late in the Afternoon of December

question 126

Multiple Choice

An inventory acquisition is received late in the afternoon of December 31 after the physical inventory is completed. If the acquisition is included in accounts payable and purchases, but excluded from inventory, the result

• A) is an understatement of net earnings.
• B) is an overstatement of net earnings.
• C) is an overstatement of working capital.
• D) is an overstatement of owner's equity.

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Definitions:

Competitive Measurements

Metrics and benchmarks used by businesses to assess their performance relative to their competitors.

5C Model

A strategic framework that focuses on five key areas for business success: Company, Customers, Competitors, Collaborators, and Context.

Commitment

The level of dedication and loyalty an individual or group has towards tasks, objectives, or an organization, often manifesting in hard work and perseverance.

Compliance

Compliance with business-relevant laws, regulations, guidelines, and specifications.