Under the Periodic Inventory Method, If an Inventory Purchase Has

question 132

Multiple Choice

Under the periodic inventory method, if an inventory purchase has been made and recorded but has NOT yet arrived (and thus is not counted) , the financial statements will

• A) Overstate assets
• B) Overstate net income
• C) Understate net income
• D) Understate revenues

---

Definitions:

Documentation

The materials that provide official information or evidence of events, processes, or the statuses of things, often used for reference, analysis, or justification.

Citation

A reference to a source of information, used in academic and professional writing to credit ideas, quotes, or data to their original authors.

Front Matter

The preliminary sections of a book or document, including the title page, table of contents, and foreword.

Recommendation Report

A document that evaluates options or solutions and suggests the most suitable one for implementation.