RH Company shipped goods to a customer on December 31,2011 that the customer had not ordered.RH Company recorded a credit sale of $75,000.What is the effect of recording this sale on RH Company's 2011 financial statements?
A) Net income and total assets are too high.
B) Net income and total assets are too low.
C) Net income is too high and total assets are too low.
D) Net income is too low and total assets are too high.
Correct Answer:
Verified
Q58: Ken's Candy has been selling to Art's
Q59: Analyst's emphasis on earnings _.
A)may cause companies
Q60: Ken's Candy has been selling to Art's
Q61: Using a shorter useful life to depreciate
Q62: RH Company shipped goods to a customer
Q64: GB Company had a very bad year
Q65: What may be the effect on a
Q66: Recognizing revenue that belongs in future accounting
Q67: Paying a cash dividend _.
A)increases earnings per
Q68: GB Company had a very bad year
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents