Goods in transit at year-end purchased FOB shipping point were appropriately recorded in the purchases account but were incorrectly excluded from the ending inventory. What effect will this omission have on the company's assets, liabilities, and retained earnings at year-end?

a. No effect, no effect, overstated
b. No effect, no effect, understated
c. Understated, no effect, overstated
d. Understated, no effect, understated

Respuesta :

Answer:

d. Understated, no effect, understated

Explanation:

The effect this omission have on the company's assets, liabilities, and retained earnings at year is understated, no effect, understated.

What is Asset?

This is defined as a resource with economic value which is owned or controlled with the expectation that it will provide a future benefit.

The effect the omission of goods will have on assets, liabilities, and retained earnings is understated, no effect, understated.

Read more about Asset here https://brainly.com/question/25790997

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE