Effect on financial statements-merchandise on consignment

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Belle Co. received merchandise on consignment. As of March 31, Belle had recorded the transaction as a purchase and included the goods in inventory. What would be the effect of this on its financial statements for March 31?

A. Net income and current liabilities were overstated.

B. Net income, current assets, and current liabilities were overstated.

C. Net income was correct and current assets and current liabilities were overstated.

D. No effect

Reference no: EM13157842

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