For the Following Transaction, Identify the Type of Change That

question 19

Multiple Choice

For the following transaction, identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Share capital + Opening retained profits + Revenue - Expenses - Dividends
Inventory was purchased on credit.

• A) An asset increased and another asset decreased.
• B) An asset decreased and an expense increased.
• C) An asset decreased and a liability decreased.
• D) A liability increased and an asset increased.

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Customers

Individuals or organizations that purchase goods or services from a business.

Industry

A group of companies or organizations that produce and provide similar products or services, often categorized within a sector of the economy.

Competitive Advantage

A unique attribute or set of attributes that enables a company to outperform its competitors.

Barriers To Entry

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.