The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in * O O an understatement of liabilities and an overstatement of owners' equity. O an understatement of cost of goods sold and liabilities and an overstatement of assets. O an understatement of assets and net income. O an overstatement of assets and net income.
The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in * O O an understatement of liabilities and an overstatement of owners' equity. O an understatement of cost of goods sold and liabilities and an overstatement of assets. O an understatement of assets and net income. O an overstatement of assets and net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The failure to record a purchase of merchandise on account even though the goods are
properly included in the physical inventory results in *
O an understatement of liabilities and an overstatement of owners' equity.
O an understatement of cost of goods sold and liabilities and an overstatement of assets.
O an understatement of assets and net income.
O an overstatement of assets and net income.
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