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 .