Office Supplies (Not Used for Resale)bought on Account Were Returned

question 52

Multiple Choice

Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Purchase Returns and Allowances.This error will cause:

• A)net income to be overstated.
• B)net income to be understated.
• C)net income to not be affected.
• D)total assets to be understated.

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Definitions:

CHAMPVA

The Civilian Health and Medical Program of the Department of Veterans Affairs, a health benefits program for eligible beneficiaries.

Non-Military

Pertaining to activities, operations, or organizations not affiliated with armed forces or defense.

Medical Services

A wide range of services provided by healthcare professionals aimed at diagnosing, treating, and preventing diseases and maintaining patient health.