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:

Significance Level

A statistical measure that determines the threshold at which the null hypothesis is rejected, commonly represented by the alpha (α) symbol and set before the experiment.

Treatment Group

In experimental research, the group of participants that receives the treatment or intervention being tested, as opposed to the control group.

Confidence Interval

A statistical range that estimates where a population parameter lies with a certain probability.

Sample Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of sample data values.