Which of the following effects would occur as a result of a purchase of merchandise for cash in a perpetual inventory system?
A)Total assets increase.
B)Total assets are unchanged.
C)Total liabilities increase.
D)Total stockholders' equity decreases.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, purchasing merchandise for cash decreases cash (an asset) and increases inventory (another asset) by the same amount, leaving total assets unchanged.

Which of the Following Effects Would Occur as a Result