Multiple Choice
Maxim Company sells auto parts.The company employs a periodic inventory system.Identify all the effects on the accounting equation.
-Gave a customer a cash refund.
A) Increase in assets
B) Decrease in assets
C) Increase in liabilities
D) Decrease in liabilities
E) Increase on owners' equity
F) Decrease in owners' equity
G) Increase in assets and increase in owners' equity
H) Decrease in assets and decrease in owners' equity
I) Increase in liabilities and decrease in owners' equity
J) Decrease in liabilities and increase in owners' equity
Correct Answer:
Verified
Correct Answer:
Verified
Q64: When inventory is sold by a wholesaler
Q115: The gross profit ratio is calculated as
Q133: A customer returned damaged goods for credit.Which
Q134: Floors, Inc.offers terms of 2/10, n/30 to
Q135: Which one of the following statements is
Q136: Xu Corp.started business at the beginning of
Q138: Ending inventory is equal to the cost
Q139: The recognition of cost of goods sold
Q140: Match the inventory-related accounts to costs that
Q141: Changing inventory methods to take advantage of