Which of the Following Happens as a Result of Selling

question 39

Multiple Choice

Which of the following happens as a result of selling $130 of merchandise to a customer for $200 cash in a state where the sales tax rate is 4%?

• A) The cash flow from operating activities increases by $208.
• B) Total assets increase by $78.
• C) stockholders' equity increases by $70.
• D) All of these answer choices are correct.

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Definitions:

Operating Cash Flow

The cash generated from the normal operations of a business, indicative of the company's financial health.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Intangible Assets

Intangible assets are non-physical assets owned by a business, such as patents, trademarks, goodwill, and licensing agreements, known for their long-term value.

Long-Term Debt

Loans and financial obligations lasting over one year that are used to finance a company's operations.