Annual Operations Company Operates in a State Where There Is $\begin{array}{lccc}\text { Cash } & 500 & \\\text { Sales } & &500 & \\\end{array}$

question 9

Multiple Choice

Annual Operations Company operates in a state where there is a 6% sales tax.If a customer pays cash for merchandise with a sales price of $500,Annual Operations would record the transaction using which of the following journal entries?

• A)
• \(\begin{array}{lccc}
• \text { Cash } & 500 & \\
• \text { Sales } & &500 & \\
• \end{array}\)
• B)

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Definitions:

Financial Assets

Assets that derive value from a contractual claim, such as bank deposits, stocks, bonds, and derivatives.

Real Asset

Physical or tangible assets such as real estate, commodities, and natural resources that have intrinsic value.

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period of time at a fixed interest rate.

Stocks

Shares of ownership in a company, representing a claim on the company's assets and profits.