In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The
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In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an increase in Accounts Payable
As a result, on the January balance sheet,
Accounts Payable was understated.
Cash was understated.
Retained Earnings was overstated.
Total liabilities were understated.
Total assets were understated.
Inventories were overstated.
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