If a Company That Uses a Perpetual Inventory System Sold

question 55

Multiple Choice

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

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

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