Wilma Received Merchandise on Consignment from Betty

question 66

Multiple Choice

Wilma received merchandise on consignment from Betty. As at March 31, Wilma had recorded the transaction as a purchase and included the goods in inventory. The effect of this on Wilma's financial statements for March 31 would be

• A) net income was correct and current assets and current liabilities were overstated.
• B) net income, current assets, and current liabilities were overstated.
• C) net income and current liabilities were overstated.
• D) no effect.

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Definitions:

Job Performance

The effectiveness with which job tasks are executed and completed by an employee or a group within an organization.

Modest

Exhibiting a moderate or low view of one’s importance, often characterized by humility and simplicity.

Constructive Stress

A form of stress that is perceived as manageable and motivating, encouraging personal growth and achievement.

Stimulate Creativity

The act of encouraging new and innovative ideas or ways of thinking, often by creating an environment that fosters curiosity, openness, and risk-taking.