ACC 304 All Assignments ACC 304 All Assignments | Page 85

b. net income was correct and current assets and current liabilities
were overstated.
c. net income, current assets, and current liabilities were overstated.
d. net income and current liabilities were overstated.
43. Green Co. received merchandise on consignment. As of January
31, Green included the goods in inventory, but did not record the
transaction. The effect of this on its financial statements for January 31
would be
a. net income, current assets, and retained earnings were overstated.
b. net income was correct and current assets were understated.
c. net income and current assets were overstated and current
liabilities were understated.
d. net income, current assets, and retained earnings were
understated.