Faust Company Uses the Perpetual Inventory Method

question 110

Multiple Choice

Faust Company uses the perpetual inventory method.Faust sold goods that cost $2,300 for $3,600.If the sale was made on account,the net effect of the sale will:

• A)increase total assets by $2,300.
• B)increase total equity by $3,600.
• C)increase total assets by $1,300.
• D)increase total assets by $3,600.

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Definitions:

Gains And Losses

The concept of experiencing advancements or progressions alongside declines or reductions in various aspects of life.

Plastic

Synthetic materials made from polymers that can be molded into various shapes when soft and then solidified, widely used for a range of products due to their versatility and durability.

Nurture

The influence of environmental factors and experiences on the development of an individual's physical and psychological attributes.

Discontinuities

Breaks or disruptions in a normally continuous process or sequence, leading to sudden changes rather than gradual developments.