A Debit

question 138

Multiple Choice

A debit

• A)increases Accounts Payable.
• B)increases Cost of Goods Sold.
• C)decreases Accounts Receivable.
• D)decreases Equipment.

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Definitions:

Inventories

Quantities of goods or materials on hand or in process of manufacture, storage, or transport.

Asset Turnover

Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, like cash, inventory, and receivables.

Total Assets

The sum of all resources owned by an entity, including both current and non-current assets, which can be used to generate value or meet obligations.