In a Perpetual Inventory System, When Cash Sales Are Recorded

question 5

Multiple Choice

In a perpetual inventory system, when cash sales are recorded:

• A)merchandise inventory decreases and cost of goods sold decreases.
• B)sales revenue increases and cash decreases.
• C)sales revenue increases and equity decreases.
• D)merchandise inventory decreases and equity decreases.

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Definitions:

Mood Disturbance

Any disruption or imbalance in one's normal mood state, which can include conditions such as depression or bipolar disorder.

Efficacy

The ability to produce a desired or intended result; typically used in the context of the effectiveness of a treatment or intervention.

Effectiveness

The degree to which something achieves its desired outcome or goal under specific conditions.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people outside of the experimental setting.