From the bank reconciliation, no entry was recorded for deposits in transit. this would cause

a. assets to be overstated.
b. assets to be understated.
c. no impact since deposits in transit are already included in the balance per books.
d. no impact since deposits aren’t recorded on the book

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.