If in the Current Year a Purchase Was Not Recorded

question 108

Multiple Choice

If in the current year a purchase was not recorded but the purchased item was included in ending physical inventory, which one of the following situations occurs for the current year?

• A)Working capital is understated, and net income is overstated.
• B)Working capital and net income are understated.
• C)Working capital is overstated, and net income is understated.
• D)Working capital and net income are overstated.

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Definitions:

Whole Milk

Milk from cows that has not had its fat content reduced; contains approximately 3.25% milk fat.

Calcium

A chemical element that is a vital nutrient necessary for many bodily functions, including bone formation, muscle contraction, and blood clotting.

Milligrams

A unit of mass equal to one thousandth of a gram.

Caloric Intake

The total amount of calories consumed through eating and drinking, integral to managing energy balance and nutritional health.