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.

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Definitions:

Strategic Objectives

Targets or goals that an organization aims to achieve, which are designed to further its long-term interests.

CSR Efforts

Corporate social responsibility efforts entail voluntary activities undertaken by a company to operate in an economic, social, and environmentally sustainable manner.

Social Well-Being

Social well-being involves the overall health, happiness, and quality of life of a community or society, focusing on the well-being of individuals and groups.

Globally Focused

Referring to businesses or strategies that target markets, customers, and operations beyond a single country, aiming for international reach and impact.