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:

Oral Contraceptive Pills

Medications taken by mouth for the purpose of preventing pregnancy, which typically contain hormones that inhibit ovulation.

Contraception

Contraception involves methods or devices used to prevent pregnancy as a result of sexual intercourse, encompassing a range of barrier, hormonal, and natural methods.

Ovulation

Release of a secondary oocyte from an ovary.

Vas Deferens

One of a pair of long ducts that carry mature sperm to the ejaculatory duct.