During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. Inventory at the start of the year was $38.2 million and at the end of the year was $53.0 million.
Which of the following describes how these transactions would be entered on the financial statement effects template?
A) Increase liabilities (Accounts payable) by $323.0 million
B) Increase expenses (Cost of goods sold) by $337.8 million
C) Increase expenses (Cost of goods sold) by $323.0 million
D) Increase noncash assets (Inventory) by $14.8 million
E) Both A and C

Question

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The Answer of During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. Inventory at the start of the year was $38.2 million and at the end of the year was $53.0 million.
Which of the following describes how these transactions would be entered on the financial statement effects template?
A) Increase liabilities (Accounts payable) by $323.0 million
B) Increase expenses (Cost of goods sold) by $337.8 million
C) Increase expenses (Cost of goods sold) by $323.0 million
D) Increase noncash assets (Inventory) by $14.8 million
E) Both A and C

During Fiscal 2016, Shoe Productions Recorded Inventory Purchases on Credit