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)does not affect earnings.
D)is indeterminable from the information given.

Question

Quizplus · Accepted Answer

The inventory is included in accounts payable and purchases but not in inventory, leading to higher expenses and lower net earnings.

An Inventory Acquisition Is Received Late in the Afternoon of December