Which One of the Following Statements Is True When a Company

question 4

Multiple Choice

Which one of the following statements is true when a company sells inventory costing $800 for $1,400 cash, and operating expenses are $500?

• A)There is no change in current assets.
• B)Gross profit increases $100.
• C)Stockholders' equity increases $100.
• D)Net sales increases $2,200.

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Definitions:

Consciously Choosing

The act of making deliberate and aware decisions regarding purchases or other life choices.

Subjectively Selecting

The process of choosing or making decisions based on personal feelings, tastes, or opinions rather than external evidence or criteria.

Subconsciously Selecting

The process by which individuals make choices or decisions without conscious awareness.

Marketing Audit

A comprehensive, systematic, and periodic evaluation of a company's marketing strategies, objectives, and activities.