Fred Received Merchandise on Consignment from Dino

question 36

Multiple Choice

Fred received merchandise on consignment from Dino. As at January 31, Fred included the goods in inventory, but did NOT record the transaction. The effect of this on Fred's financial statements for January 31 would be

• A) net income, current assets, and retained earnings were understated.
• B) net income was correct and current assets were understated.
• C) net income, current assets, and retained earnings were overstated.
• D) net income and current assets were overstated and current liabilities were understated.

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Definitions:

Eating Habits

Refers to the patterns, behaviors, and practices around food consumption by individuals or groups.

Obese

A medical condition characterized by excess body fat that presents a risk to health, often defined by a Body Mass Index (BMI) of 30 or higher.

Description of Behavior

An account or portrayal of the actions or reactions of an individual or group in response to various stimuli or situations.

Observable

Capable of being seen, noticed, or measured directly, often used in research to describe variables or phenomena.