On December 27,2014,Admission Company Ordered Merchandise for Resale from Eviction,Inc

question 21

Multiple Choice

On December 27,2014,Admission Company ordered merchandise for resale from Eviction,Inc.,that cost $7,000 (terms cash within 10 days) .Eviction shipped the merchandise F.o.b. shipping point on December 28, 2014, and the goods arrived on January 2, 2015. The invoice was received on December 30, 2014. Admission Company did not record the purchase in 2014 and did not include the goods in ending inventory. The effects on Admission Company's 2014 financial statements were

• A)income and owners' equity were correct; liabilities were incorrect, assets were correct.
• B)income and owners' equity were correct; assets and liabilities were incorrect.
• C)income, assets, liabilities, and owners' equity were correct.
• D)income, assets, liabilities, and owners' equity were incorrect.

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Definitions:

Implicit Encoding

A principle of imagery holding that mental imagery is used in retrieving information about physical properties of objects, or about physical relationships among objects, that might not have been explicitly encoded.

Structural Encoding

The process of converting sensory input into a meaningful perceptual representation based on the structure of objects.

Brain Activity

The various physiological and neurochemical operations that occur within the brain, including cognitive processes and neural communications.

Temporal Lobe

A division of the cerebral cortex located on the side of the head that is involved in the processing of auditory information and in some aspects of memory.