Which of the Following Statements Does Not Accurately Describe the Affect

question 17

Multiple Choice

Which of the following statements does not accurately describe the affect of the sale of inventory at a profit on the financial statements?

• A)Income from operations and current assets both increase.
• B)Operating income and gross profit both increase.
• C)Net income and earnings per share both increase.
• D)Current assets don't change and stockholders' equity increases.

---

Definitions:

Stream of Profits

A continuous flow of earnings generated by a business or investment over a period of time.

Mining

The extraction of valuable minerals or other geological materials from the Earth.