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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Aa 129.
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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