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How Does the Following Journal Entry Affect a Company's Financial

Question 53

Multiple Choice

How does the following journal entry affect a company's financial statements?
How does the following journal entry affect a company's financial statements? A) An increase in operating expenses shown on the income statement B) An increase in the amount of cost of goods sold shown on the income statement C) An increase in inventory shown on the balance sheet D) A decrease in gross margin shown on the income statement


A) An increase in operating expenses shown on the income statement
B) An increase in the amount of cost of goods sold shown on the income statement
C) An increase in inventory shown on the balance sheet
D) A decrease in gross margin shown on the income statement

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