d. Not on the balance sheet.
28. If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f. o. b. shipping point in purchases, but not ending inventory?
a. Overstate net income.
b. Understate net income.
c. No effect on net income.
d. Not sufficient information to determine effect on net income.
29. If a company uses the periodic inventory system, what is the impact on the current ratio of including goods in transit f. o. b. shipping point in purchases, but not ending inventory?
a. Overstate the current ratio.