What Is the Effect on the Statement of Financial Position

question 49

Multiple Choice

What is the effect on the statement of financial position when the business has cash sales of $15,000 of goods that were originally purchased for $10,000?

• A)Increase asset bank $12,000; increase equity $12,000.
• B)Increase asset bank $15,000; decrease asset inventory $10,000; increase equity $5,000.
• C)Increase asset bank $4,000; increase equity $4,000.
• D)None of the above.

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Definitions:

Creativity

The ability to generate novel and valuable ideas or solutions to problems.

Innovation Process

The series of steps involved in developing and implementing new ideas, products, or services, typically including ideation, validation, development, and commercialization.

Idea's Value

The intrinsic or perceived worth of an idea, based on its potential impact, innovation, and usefulness.

Final Application

The ultimate or last in a series of steps, processes, or applications, often implying a conclusion or end result.