If a Company That Uses a Perpetual Inventory System Sold

question 53

Multiple Choice

If a company that uses a perpetual inventory system sold inventory which cost $1,000 for a selling price of $3,000,the accounting equation would show a net:

• A)increase in assets and net increase in stockholders' equity.
• B)increase in assets and net decrease in liabilities.
• C)decrease in assets and net increase in liabilities.
• D)decrease in assets and net decrease in stockholders' equity.

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Definitions:

License Agreement

A contract wherein one party (the licensor) allows another (the licensee) the rights to use, produce, or sell its intellectual property or product under specified conditions.

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Partial Assignment

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