Using a Perpetual Inventory System, the Return of Merchandise Purchased

question 3

Multiple Choice

Using a perpetual inventory system, the return of merchandise purchased on account includes a(n) :

• A) increase in Sales.
• B) increase in Merchandise Inventory.
• C) decrease in Merchandise Inventory.
• D) decrease in Sales.

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Definitions:

Encourage

To support, inspire, or motivate individuals or groups to take action or to continue with an activity.

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.

Maintain

To keep something in an existing state or condition, preventing it from deteriorating or ensuring its continual effectiveness.

Avoid

To deliberately stay away from or prevent an event or situation from happening.