In Recording the Cost of Merchandise Sold for Cash Using

question 84

Multiple Choice

In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is:

• A) increase Cost of Merchandise Sold; increase Cash.
• B) increase Cost of Merchandise Sold; decrease Merchandise Inventory.
• C) increase Merchandise Inventory; decrease Cost of Merchandise Sold.
• D) increase Accounts Receivable; decrease Merchandise Inventory.

---

Definitions:

Management

The process of coordinating and overseeing the operations and activities of an organization or business to achieve defined objectives.

Unanimous Agreement

An agreement or decision made with the approval of all parties involved, indicating total consensus without any dissent.

Disclosure

The act of making new or significant information known, particularly in legal and corporate contexts, where transparency is required by law or policy.

Principal

The main party to a transaction, obligation, or financial instrument, in contrast to an agent or intermediary.