What Is the Effect on the Balance Sheet When the Business

question 54

Multiple Choice

What is the effect on the balance sheet when the business has cash sales of $12,000 of goods that were originally purchased for $8,000?

• A) increase the asset Bank by $12,000; increase equity by $12,000
• B) increase the asset Bank by $4,000; increase equity by $4,000
• C) increase the asset Bank by $12,000, decrease the asset Inventory by $8,000; increase equity by $4,000
• D) none of the above

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