18. A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise was omitted from the year end physical count. How will these errors affect assets, liabilities, and stockholders' equity at year end and profit for the year? Shareholders' Equity Overstate Understate No effect Profit Overstate Assets No effect No effect Understate Liabilities Understate А. В. Overstate Understate No effect Understate С. Understate D. Understate No effect Understate
18. A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise was omitted from the year end physical count. How will these errors affect assets, liabilities, and stockholders' equity at year end and profit for the year? Shareholders' Equity Overstate Understate No effect Profit Overstate Assets No effect No effect Understate Liabilities Understate А. В. Overstate Understate No effect Understate С. Understate D. Understate No effect Understate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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