An Inventory Acquisition Is Received Late in the Afternoon of December

question 126

Multiple Choice

An inventory acquisition is received late in the afternoon of December 31 after the physical inventory is completed. If the acquisition is included in accounts payable and purchases, but excluded from inventory, the result

• A) is an understatement of net earnings.
• B) is an overstatement of net earnings.
• C) is an overstatement of working capital.
• D) is an overstatement of owner's equity.

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Definitions:

Temperate Fish

Fish species that live in waters with moderate temperatures, neither too hot nor too cold, typically between polar and tropical regions.

Reconciliation Ecology

The science of inventing, establishing, and managing habitats to conserve species diversity in areas where people live, work, or play.

Deforested Area

Regions where trees have been cut down and removed, leading to loss of forest cover.