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dybincka [34]
3 years ago
10

Goods in transit at year-end purchased FOB shipping point were appropriately recorded in the purchases account but were incorrec

tly excluded from the ending inventory. What effect will this omission have on the company's assets, liabilities, and retained earnings at year-end?
a. No effect, no effect, overstated
b. No effect, no effect, understated
c. Understated, no effect, overstated
d. Understated, no effect, understated
Medicine
1 answer:
azamat3 years ago
6 0

Answer:

d. Understated, no effect, understated

Explanation:

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