Assume That a Company Uses a Perpetual Inventory System and Records

question 202

Multiple Choice

Assume that a company uses a perpetual inventory system and records the return of inventory previously purchased on account a debit to Accounts Payable and a credit to Inventory.This entry is:

• A) incorrect and will cause assets to be overstated
• B) incorrect and will cause assets to be understated
• C) incorrect and will cause liabilities to overstated
• D) correct

---

Definitions:

Discrimination Learning

A process by which an organism learns to respond differently to various stimuli, distinguishing between similar but distinct cues.

Excitatory Generalization Gradient

The tendency for the conditioned response to be elicited by stimuli that are similar to the conditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, begins to elicit a conditioned response on its own.

Conditioned Response

The learned reaction to a previously neutral stimulus that becomes conditioned through association with an unconditioned stimulus.