Maxim Company Sells Auto Parts

question 42

Multiple Choice

Maxim Company sells auto parts.The company employs a periodic inventory system.Identify all the effects on the accounting equation.
-Granted a customer a credit on its balance due for goods that were returned.

• 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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Definitions:

Lifetime Prevalence

The percentage of people within a population who have encountered a certain disorder at least once in their lifetime until the time they are evaluated.

Substance Abuse

The misuse of legal or illegal substances such as drugs or alcohol that leads to significant impairment or distress.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits that negatively affect a person's health and wellbeing.

Behavioural Disorder

A type of disorder that involves a pattern of disruptive behaviours in children and adults that last for at least six months and cause problems in school, work, or social relationships.