Argus Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array}{l|l} + & -\end{array}& &NA&&NA&NA&&NA&&NA \
\hline
\end{array}$ Which of the following accounting events could have caused the indicated effects on the company's accounting equation?
A) Applied manufacturing overhead to work in process
B) Purchased raw materials for cash
C) Paid cash wages of production workers
D) All of these.

Question

Argus Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline  \begin{array}{l|l} + & -\end{array}&  &NA&&NA&NA&&NA&&NA \
\hline
\end{array}$ Which of the following accounting events could have caused the indicated effects on the company's accounting equation?
A) Applied manufacturing overhead to work in process
B) Purchased raw materials for cash
C) Paid cash wages of production workers
D) All of these.

Quizplus · Accepted Answer

Applying manufacturing overhead to work in process, purchasing raw materials for cash, and paying cash wages to production workers are all events that would affect the accounting equation in the manner indicated.

Argus Company Experienced an Accounting Event That Affected Its Financial