Maxim Company Sells Auto Parts

question 37

Multiple Choice

Maxim Company sells auto parts.The company employs a periodic inventory system.Identify all the effects on the accounting equation.
-Sold merchandise on credit to customers.

• 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

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