Faust Company Uses the Perpetual Inventory System

question 79

Multiple Choice

Faust Company uses the perpetual inventory system.Faust sold goods that cost $2,300 for $3,600.The sale was made on account.What is the net effect of the sale on the company's financial statements? (Consider the effects of both parts of this event. )

• A)Increase total assets by $2,300
• B)Increase total stockholders' equity by $3,600
• C)Increase total assets by $1,300
• D)Increase total assets by $3,600

---

Definitions:

Gay and Lesbian Adults

Individuals who identify as either gay or lesbian, indicating their sexual orientation toward people of the same sex.

Adoptive Parents

Individuals who legally adopt and raise a child or children who are not biologically their own.

Epigenetic View

Theory that development is the result of an ongoing, bidirectional interchange between heredity and environment.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.