A discount on a purchase was debited to Merchandise Inventory and a credit to Accounts Payable at the time the entry was recorded. This error will cause:
A) net income to be overstated.
B) net income to be understated.
C) total assets to be understated.
D) total assets to be overstated.

Question

Quizplus · Accepted Answer

The Answer of A discount on a purchase was debited to Merchandise Inventory and a credit to Accounts Payable at the time the entry was recorded. This error will cause:
A) net income to be overstated.
B) net income to be understated.
C) total assets to be understated.
D) total assets to be overstated.

A Discount on a Purchase Was Debited to Merchandise Inventory