Homework SourseWhich of the following shows the effects of purchasing inven
Which of the following shows the effects of purchasing inventory on account?
Option a
Option b
Option c
Option d
| Balance Sheet | Income Statement | Statement of Cash Flows | |||||||||
| Assets | = | Liab. | + | Equity | Rev. | - | Exp. | = | Net Inc. | ||
| A. | + | = | + | + | NA | NA | - | + | = | - | NA |
| B. | + | = | NA | + | + | NA | - | NA | = | NA | + OA |
| C. | + | = | + | + | NA | NA | - | NA | = | NA | NA |
| D. | + | = | + | + | NA | NA | - | NA | = | NA | + OA |
Solution
Option c as there will be increase in current assets and current liability.
And this will be purchased on account not in cash that is y there is no cash outflow from business
Please rate it at the end thank you
