A-LevelAccountingPreparation of financial statements9706/12 · May/June 2013 · Q171 Mark
A business sells some inventory for $80 on credit. This originally cost $50. How does this affect the statement of financial position?
Acurrent assets decrease by $30, owner's capital decreases by $30
Bcurrent assets decrease by $30, owner's capital increases by $30
Ccurrent assets increase by $30, owner's capital decreases by $30
Dcurrent assets increase by $30, owner's capital increases by $30
✓ Correct answer
D: current assets increase by $30, owner's capital increases by $30
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