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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Definitions:

Mental Process

Internal cognitive operations that include thinking, perceiving, remembering, and decision-making.

Subjective Perceptions

Individual interpretations or feelings about experiences, objects, or concepts that are influenced by personal opinions, background, and emotions.

Consciousness

The awareness of oneself, one’s thoughts, feelings, and environment, distinct from but related to collective consciousness in its focus on the individual level of awareness.

Mind

The element of a person that enables them to be aware of the world and their experiences, to think, and to feel.