What Is the Effect on the Statement of Financial Position

question 9

Multiple Choice

What is the effect on the statement of financial position when the business has cash sales of $12,000 of goods that were originally purchased for $8,000?

• A) Increase asset bank $12,000; increase equity $12,000.
• B) Increase asset bank $12,000; decrease asset inventory $8,000; increase equity $4,000.
• C) Increase asset bank $4,000; increase equity $4,000.
• D) None of the above.

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Definitions:

Conflicts

Situations where interests, needs, goals, or values of involved parties interfere with one another.

Subordinates

Individuals who work under the supervision of someone else in an organizational hierarchy.

Chain Of Command

The chain of command links all persons with successively higher levels of authority.

Mixed Message

Communication that contains conflicting or ambiguous information, often leading to misunderstanding or confusion.