The Following Entry Is Taken from the Journal of a Merchandising

question 6

Multiple Choice

The following entry is taken from the journal of a merchandising company:
$\begin{array}{|l|r|r|}\hline \text { Cost of Goods Sold } & 6,000 & \\\hline \text { Merchandise Inventory } & & 6,000 \\\hline\end{array}$
What is the effect of this entry on the company's financial statements?

• A) Assets and stockholders' equity increase.
• B) Assets and liabilities increase.
• C) Assets and stockholders' equity decrease.
• D) Assets decrease and stockholders' equity increases.

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Definitions:

Socioeconomic Status

Ranking in society based on a combination of occupational, educational, and income levels.

Ethnicity

A category of people who identify with each other based on shared ancestral, social, cultural, or national experiences.

STI Transmission

The process by which sexually transmitted infections are spread from one person to another through sexual activities.

Sex Researchers

Specialists who study human sexuality, including behaviors, functions, and processes.