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.
Answer: A
Accounting
- Per U.S. GAAP, which of the following statements is correct regarding accounting changes that result in financial statements that are, in effect, the statements of a different reporting entity?
- Under U.S. GAAP, a transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:
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- In open market transactions , Gold Corp. simultaneously sold its long-term investment in Iron Corp. bonds and purchased its own outstanding bonds. The broker remitted the net cash from the two transactions. Gold's gain on the purchase of its own bonds exceeded its loss on the sale of the Iron bonds. Assume the transaction to purchase its own outstanding bonds is unusual in nature and has occurred infrequently. Under U.S. GAAP , Gold should report the:
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- How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?
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- According to the IASB conceptual framework, the usefulness of providing information in the financial statements is subject to the constraint of:
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- According to the FASB conceptual framework, which of the following relates to both relevance and reliability?
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- Which payroll taxes is withheld from an employee's paycheck?
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- True or False? - If you Issue a bond at a premium, you receive more than face value
- What is the formula to calculate basic interest?
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