Which of the Following Business Transactions Would Increase the Equity

question 38

Multiple Choice

Which of the following business transactions would increase the equity of ABC Limited?

• A)ABC received a $1,200 cash payment on account from a customer.
• B)ABC Limited's owner withdrew $900 cash to cover personal living expenses.
• C)ABC purchased a building for $100,000 on account.
• D)ABC purchased a new machine for $45,000 on account.
• E)ABC billed a customer $14,800 for consulting services provided during the month.

Recognize the effects of inventory methods on income taxes.

Understand the components of the year-end inventory balance.

Grasp the impact of inventory estimation errors on financial statements and cash flow.

Understand the calculation and significance of inventory turnover.

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Definitions:

Skates

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Extinct hominin; earliest named Homo species; known only from Africa, where it arose 2.3 million years ago.

Homo Erectus

An extinct species of early human that lived throughout Africa and Eurasia during the Pleistocene Epoch.

Vertebrate Lung

A respiratory organ found in vertebrates that exchanges oxygen and carbon dioxide with the environment.