Which of the Following Statements Is False When a Company

question 115

Multiple Choice

Which of the following statements is false when a company sells inventory costing $900 for $1,500 cash?

• A)Current assets increase $600.
• B)Gross profit increases $1,500.
• C)Stockholders' equity increases $600.
• D)Net sales increases $1,500.

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Definitions:

Quantity of Gold Bars

The total number or weight of gold bars held or transacted.

Renewable Natural Resource

A resource that can replenish itself naturally over time, such as solar energy, wind, and biomass.

Aquifers

Underground layers of water-bearing permeable rock or materials through which groundwater can be extracted using a well.

Renewable Natural Resources

Things such as forests, water in reservoirs, and wildlife that are capable of growing back or building back up (renewing themselves) if they are harvested at moderate rates.