Author Question: Specifying control goals is the first step in preparing a control matrix. Indicate whether the ... (Read 51 times)

maegan_martin · **on:** Jul 5, 2018

Specifying control goals is the first step in preparing a control matrix.
Indicate whether the statement is true or false

Question 2

Mighty Ducks, Inc.'s inventory activity in October 2011 was as follows:

Inventory, October 1 11 units 8 each
Purchase, October 12 22 units 11 each
Sale, October 25 23 units 24 each

Which of the following shows the correct effect on the accounting equation of the October 25 sale on account using the perpetual FIFO method of accounting for inventory?

A) Assets Liabilities Shareholders' equity
(220) Inventory 552 Accounts payable 552 Sales
(220) Cost of goods sold

B) Assets Liabilities Shareholders' equity
552 Accounts receivable
(250) Inventory No effect 552 Sales
(250) Cost of goods sold

C) Assets Liabilities Shareholders' equity
552 Accounts receivable
(220) Inventory No effect 552 Sales
(220) Cost of goods sold

D) Assets Liabilities Shareholders' equity
(230) Inventory 552 Accounts payable 552 Sales
(230) Cost of goods sold