ACC 304 All Assignments ACC 304 All Assignments | Page 75

a. Accounts payable.
b. Inventory.
c. Equipment.
d. Not on the balance sheet.
28. If a company uses the periodic inventory system, what is the
impact on net income of including goods in transit f.o.b. shipping point
in purchases, but not ending inventory?
a. Overstate net income.
b. Understate net income.
c. No effect on net income.
d. Not sufficient information to determine effect on net income.