Asked by
Eyerus Mekonnen
on Dec 17, 2024
Verified
The shipping paid on goods purchased F.O.B. Shipping Point was not recorded. This error will cause:
A) net income to be overstated.
B) net income to be understated.
C) total liabilities to be understated.
D) total liabilities to be overstated.
Total Liabilities
The cumulative amount of all debts and financial obligations a company owes to outside parties.
- Understand the consequences of actions related to purchasing, returning, and remunerating for items on financial statements.
- Analyze the repercussions of errors in documenting transactions on net income as well as total assets or liabilities.
- Calculate and record the effect of freight charges on merchandise purchases.
Verified Answer
PS
Learning Objectives
- Understand the consequences of actions related to purchasing, returning, and remunerating for items on financial statements.
- Analyze the repercussions of errors in documenting transactions on net income as well as total assets or liabilities.
- Calculate and record the effect of freight charges on merchandise purchases.