In Recording the Cost of Merchandise Sold for Cash Using

question 84

Multiple Choice

In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is:

• A) increase Cost of Merchandise Sold; increase Cash.
• B) increase Cost of Merchandise Sold; decrease Merchandise Inventory.
• C) increase Merchandise Inventory; decrease Cost of Merchandise Sold.
• D) increase Accounts Receivable; decrease Merchandise Inventory.

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Definitions:

Waste Elimination

The process of reducing, reusing, recycling, or disposing of waste materials to minimize their impact on the environment.

Customer Satisfaction

A measure of how products and services supplied by a company meet or surpass customer expectations.

National Quality Award

An accolade given to companies that exhibit outstanding quality management and operational excellence.

Malcolm Baldrige Foundation

A foundation that supports the Malcolm Baldrige National Quality Award, which recognizes U.S. organizations for their achievements in quality and performance.