Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

Aa 129.

How would a sale of $320 of inventory on credit affect the balance sheet if the cost of the inventory sold was $128? Select one: O a. It would increase noncash assets by $320 and increase equity by $320 O b. It would decrease noncash assets by $128 and decrease equity by $128 O c. It would increase cash by $320 and increase equity by $320 d. Both A and B, above happen simultaneously e. None of the above
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Transcribed Image Text:How would a sale of $320 of inventory on credit affect the balance sheet if the cost of the inventory sold was $128? Select one: O a. It would increase noncash assets by $320 and increase equity by $320 O b. It would decrease noncash assets by $128 and decrease equity by $128 O c. It would increase cash by $320 and increase equity by $320 d. Both A and B, above happen simultaneously e. None of the above
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