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.

---

Definitions:

Mechanism

The detailed step-by-step description of how a chemical reaction occurs at the molecular level.

Reaction

A process that results in the chemical transformation of one set of chemical substances to another.

Benzene

A simple aromatic hydrocarbon with the chemical formula C6H6, known for its ring structure and stability.

Compound

A substance made up of two or more elements chemically combined in fixed proportions.