Question:Wonder Corporation Ltd. failed to record the purchase of merchandise in their account books. The merchandise and related accounts payable should have been recorded but were not. What would be the effect of these errors on assets, liabilities, retained earnings, and net income respectively? 

A Understated, understated, no effect, no effect 
B Understated, understated, understated, understated 
C Understated, overstated, overstated, understated 
D Overstated, overstated, understated, overstated 

+ Answer
B 

+ Explanation
answer not sure

+ Report

Md. Habib Ullah

Editor, VCampus

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