On June 15, 2007, Tolon Corporation accepted delivery of merchandise which it pur-chased on account.As of June 30, Tolon had not recorded the transaction or included the merchandise in its inventory.The effect of this on its balance sheet for June 30, 2007 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.

Question

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The Answer of On June 15, 2007, Tolon Corporation accepted delivery of merchandise which it pur-chased on account.As of June 30, Tolon had not recorded the transaction or included the merchandise in its inventory.The effect of this on its balance sheet for June 30, 2007 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.

On June 15, 2007, Tolon Corporation Accepted Delivery of Merchandise