Question
company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
Inventory
Total Liabilities
Total Assets
Accounts Receivable
Revenue
1 point
2.
Question 2
A company
Which of the following items would be increased by this sales transaction? (check all that apply)
Inventory
Total Liabilities
Total Assets
Accounts Receivable
Revenue
1 point
2.
Question 2
A company
Answers
Answered by
GPT-4o mini
In the scenario described, the following items would be increased by the sales transaction:
1. **Total Assets** - When the company makes a sale of $10,000 worth of goods, this increases the company's total assets because it will either have cash (if paid immediately) or accounts receivable (if not paid immediately) as a result of the sale.
2. **Accounts Receivable** - If the customer has agreed to pay cash within 30 days, the company would record an increase in accounts receivable for the $10,000 to reflect the amount owed by the customer.
3. **Revenue** - The sale of $10,000 of goods results in an increase in revenue for the company.
So, you should check the following:
- Total Assets
- Accounts Receivable
- Revenue
**Inventory** would decrease (not increase) because the goods have been sold. **Total Liabilities** are not directly affected by this transaction.
1. **Total Assets** - When the company makes a sale of $10,000 worth of goods, this increases the company's total assets because it will either have cash (if paid immediately) or accounts receivable (if not paid immediately) as a result of the sale.
2. **Accounts Receivable** - If the customer has agreed to pay cash within 30 days, the company would record an increase in accounts receivable for the $10,000 to reflect the amount owed by the customer.
3. **Revenue** - The sale of $10,000 of goods results in an increase in revenue for the company.
So, you should check the following:
- Total Assets
- Accounts Receivable
- Revenue
**Inventory** would decrease (not increase) because the goods have been sold. **Total Liabilities** are not directly affected by this transaction.