Argus Company Experienced an Accounting Event That Affected Its Financial

question 39

Multiple Choice

Argus Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused the indicated effects on the company's accounting equation?
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline { \text { Assets } } && = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline + & - & & \text { NA } & & \text { NA } & \text { NA } & & \text { NA } & & \text { NA } \\\hline\end{array}$$

• A)Applied manufacturing overhead to work in process
• B)Purchased raw materials for cash
• C)Paid cash wages of production workers
• D)All of these.

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Definitions:

Carbon Tetrachloride

A volatile, colorless liquid with a slightly sweet smell, historically used in fire extinguishers and as a solvent, but now known to be a harmful carcinogen.

Mechanistic Steps

The sequential individual reactions or movements of electrons that occur during the course of a complex chemical reaction.

Chloromethane

A colorless, flammable gas with a mild sweet odor, used in manufacturing and as a refrigerant; its chemical formula is CH3Cl.

Monochlorination

The chemical process of introducing one chlorine atom into a molecule, commonly used in the organic synthesis of chlorinated compounds.