Garrett Company uses the perpetual inventory system. The company's records showed a book balance of $18,000 in the Merchandise Inventory account, and a physical count finds only $16,250 of inventory. Which ofthe following represents the financial statement effect of writing-down the inventory?A.B.C.D.Assets(1,750)n/a16,250(18,000)Multiple ChoiceOOO OOption B= Liabilities +n/a1,750n/an/aOption COption DBalance SheetOption AStockholders'Equity(1,750)(1,750)16,250(18,000)Revenuen/an/a16,250(18,000)Income Statement.Expense1,7501,750n/an/a= Net Income(1,750)(1,750)16,250(18,000)Statement of Cash Flowsn/an/a16,250 Investing Activityn/a

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Description: Garrett Company uses the perpetual inventory system. The company's records showed a book balance of $18,000 in the Merchandise Inventory account, and a physical count finds only $16,250 of inventory. Which ofthe following represents the financial st

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Garrett Company uses the perpetual inventory system. The company's records showed a book balance of $18,000 in the Merchandise Inventory account, and a physical count finds only $16,250 of inventory. Which of the following represents the financial statement effect of writing-down the inventory? Balance Sheet A. B. C. D. Assets (1,750) n/a 16,250 (18,000) Multiple Choice O O Option B Option C Liabilities + n/a 1,750 n/a n/a Stockholders' Equity (1,750) (1,750) 16,250 (18,000) Revenue n/a n/a 16,250 (18,000) Income Statement Expense 1,750 1,750 n/a n/a = Net Income (1,750) (1,750) 16,250 (18,000) Statement of Cash Flows n/a n/a 16,250 Investing Activity n/a

Garrett Company uses the perpetual inventory system. The company's records showed a book balance of $18,000 in the Merchandise Inventory account, and a physical count finds only $16,250 of inventory. Which of the following represents the financial statement effect of writing-down the inventory? Balance Sheet A. B. C. D. Assets (1,750) n/a 16,250 (18,000) Multiple Choice O O Option B Option C Liabilities + n/a 1,750 n/a n/a Stockholders' Equity (1,750) (1,750) 16,250 (18,000) Revenue n/a n/a 16,250 (18,000) Income Statement Expense 1,750 1,750 n/a n/a = Net Income (1,750) (1,750) 16,250 (18,000) Statement of Cash Flows n/a n/a 16,250 Investing Activity n/a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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