Herndon Corp

question 62

Multiple Choice

Herndon Corp.purchased merchandise on account from Likert Corp.on November 18, 2016.On November 21, 2016, Herndon returned damaged merchandise to Likert and was granted an adjustment on its account.Herndon uses the periodic inventory system.What effect does the merchandise return have on Herndon's accounting equation?

• A) Assets and liabilities decrease.
• B) Assets and stockholders' equity decrease.
• C) Liabilities and stockholders' equity decrease.
• D) Liabilities decrease and stockholders' equity increases.

---

Definitions:

Complete Workout

A exercise regime that incorporates all major muscle groups, cardiovascular training, and flexibility exercises to ensure overall fitness.

Stretching Exercises

Physical activities that aim to increase the flexibility of muscles and improve the range of motion in joints.

Threshold

A critical point or level that, when exceeded, initiates a different state or action.

Fitness Benefits

Improvements in physical health, mental health, and overall well-being achieved through regular physical activity.