Question: 1.Under the perpetual inventory method, a.assets increase when inventory is purchased on account. b.ignoring the effects of revenue recognition, assets decrease when inventory is sold.

1.Under the perpetual inventory method,

a.assets increase when inventory is purchased on account.

b.ignoring the effects of revenue recognition, assets decrease when inventory is sold.

c.ignoring the effects of revenue recognition, equity increases when inventory is sold.

d.both a and b.

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