Kronic Enterprises sold inventory costing $500 for $900 on account. If Kronic Enterprises operates under the accrual basis, what net effect will this transaction have on the owners' equity side of the balance sheet?
A) None, since the customer to whom the inventory was sold has not yet paid
B) None, since sales and/or cost of goods sold are income statement accounts
C) Decrease owners' equity by $1,400
D) Increase owners' equity by $400
E) Increase owners' equity by $1,400
D
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The notes to the financial statements would LEAST likely be used for which of the following purposes?
A) to provide information regarding the context in which these financial numbers were generated B) to disclose the financial implications of any off-balance sheet transactions C) to show how the value of assets listed in the financial statements were arrived at D) to explain the method of accounting that was used in the preparation of the financial statements
Which of the following is least likely to be found in service organizations?
a. Intermediate levels in aggregate planning b. Bills of labor (BOL) c. Bills of resources and forecasting d. Dependent demand