Star Company recognized $500 of cost of goods sold. Note that Star is only recording the cost of goods sold part of the transaction and not the sales revenue. Star uses the perpetual inventory system. Which of the following answers reflects the effect of recognizing the cost of goods sold on the financial statements? Balance Sheet Income Statement Liabilities + Assets A. 500 B. (500) C. (500) D. (500) Multiple Choice O OOO Option B Option A Option C Option D (500) Stockholders' Equity 500 (500) n/a (500) Revenue n/a n/a n/a n/a Expense 500 500 500 n/a = Net Income (500) (500) (500) n/a Statement of Cash Flows n/a n/a 500 Operating Activity n/a

Star Company recognized $500 of cost of goods sold. Note that Star is only recording the cost of goods sold part of the transaction and not the sales revenue. Star uses the perpetual inventory system. Which of the following answers reflects the effect of recognizing the cost of goods sold on the financial statements? Balance Sheet Income Statement Liabilities + Assets A. 500 B. (500) C. (500) D. (500) Multiple Choice O OOO Option B Option A Option C Option D (500) Stockholders' Equity 500 (500) n/a (500) Revenue n/a n/a n/a n/a Expense 500 500 500 n/a = Net Income (500) (500) (500) n/a Statement of Cash Flows n/a n/a 500 Operating 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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Q29
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I computed 72,540 but is checked wrong why?