Which is the correct formula for calculating cost of goods purchased?

Group of answer choices

A. Purchases + purchase returns and allowances + purchase discounts = Cost of purchases

B. Purchases - purchase discounts purchase returns and allowances transportation in = Cost of purchases

C. Purchases + purchase discounts purchase returns and allowances + transportation in = Cost of purchases

D. Purchases purchase discounts purchase returns and allowances + transportation in = Cost of purchases

Which of the following is a reason that equity financing may be more appealing than debt financing in some situations?

Group of answer choices

A.Equity financing may lower certain financial ratios such as earnings per share.

B. Equity is considered a permanent form of financing and does not restrict cash flow as much as mandatory debt and interest payments.

C. Interest paid on debt is deductible for tax purposes.

D. Dividends paid to shareholders are flexible in terms of payment and are not taxable.

Which of the following is true regarding the recording of transactions?

Group of answer choices

A. Adjusting revenues and expenses has no effect on the balance sheet.

B. The accounting transaction must remain in balance, so at least two accounts are affected by every transaction.

C. Only one asset can be adjusted in each transaction.

D. Sometimes only cash is affected.