A company purchased inventory on account. If the perpetual inventory method is used, which of the following choices accurately reflects how the purchase affects the company's financial statements?

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expense $=$ Net Income

A$.++$ NA NA $+$ NA

B$.+/$ NA NA NA NA NA $$OA

C$.++$ NA NA NA NA NA

D$.++$ NA NA NA NA $$OA

Multiple Choice

Option C

Option B

Option A

Option D