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.

---

Definitions:

Share

Represents a unit of ownership interest in a corporation or financial asset.

Capital Balances

Refers to the amounts shown in the equity section of the balance sheet, representing the owner’s investment in the business.

Net Loss

A situation where a company's expenses exceed its revenues during a specific period, indicating negative profitability.

Annual Salary

The total amount of money that an employee is paid annually by their employer for their professional services.