If a Company That Uses a Perpetual Inventory System Sold

Multiple Choice

If a company that uses a perpetual inventory system sold inventory which cost $1,000 for a selling price of $3,000,the accounting equation would show a net:

A) increase in assets and net increase in stockholders' equity.
B) increase in assets and net decrease in liabilities.
C) decrease in assets and net increase in liabilities.
D) decrease in assets and net decrease in stockholders' equity.