Match each situation to its impact (a-c) on the current year's net income.
-Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.
A)Net income for the current year will be overstated.
B)Net income for the current year will be understated.
C)There will be no error effect on net income.

Question

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The Answer of Match each situation to its impact (a-c) on the current year's net income.
-Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.
A)Net income for the current year will be overstated.
B)Net income for the current year will be understated.
C)There will be no error effect on net income.

Match Each Situation to Its Impact (A-C) on the Current