General Lighting During the First Quarter of 2012,the Company Sold

question 24

Multiple Choice

General Lighting During the first quarter of 2012,the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.
-Refer to General Lighting.When the company records this transaction,what is the impact on the accounting equation?

• A)Both assets and liabilities decrease.
• B)Assets decrease and liabilities increase.
• C)Assets,liabilities,and stockholders' equity will all increase.
• D)Assets increase and stockholders' equity decreases.

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Definitions:

Government Budget Deficit

The financial situation where a government's expenditures exceed its revenues, leading to borrowing or debt accumulation.

Exchange Rate

The exchange rate of one currency to another.

Yen

The official currency of Japan, symbolized as ¥ and known in finance as JPY.

Dollar

The official currency of the United States, also used as a standard monetary unit in many other countries.