Unger Company Uses the Perpetual Inventory Method

question 15

Multiple Choice

Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:

• A) increase total assets by $3,700.
• B) increase total liabilities by $7,200.
• C) increase total liabilities by $3,500.
• D) increase total assets by $7,200.

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Definitions:

Restricted Grant

Funding provided for a specific purpose, with limitations on how it can be spent by the recipient.

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Financial reports that show the financial position and results of operations of governmental entities, focusing on how money flows into and out of funds.

General Fund

The primary operating fund of a government, covering all financial resources except those required to be accounted for in another fund.