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.
b. stockholders ' equity was the only item affected by the omission. c. assets, liabilities, and stockholders ' equity were understated. d. none of these.
46. What is the effect of a $ 50,000 overstatement of last year ' s inventory on current years ending retained earning balance?
a. Understated by $ 50,000. b. No effect. c. Overstated by $ 50,000. d. Need more information to determine.
47. Which of the following is a product cost as it relates to inventory?