the transaction , but did not include the merchandise in its inventory . The effect of this on its financial statements for December 31 would be
a . net income , current assets , and retained earnings were understated .
b . net income was correct and current assets were understated .
c . net income was understated and current liabilities were overstated .
d . net income was overstated and current assets were understated .
45 . On June 15 , 2012 , Wynne Corporation accepted delivery of merchandise which it pur-chased on account . As of June 30 , Wynne had not recorded the transaction or included the merchandise in its inventory . The effect of this on its balance sheet for June 30 , 2012 would be
a . assets and stockholders ' equity were overstated but liabilities were not affected .