A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2014 · Q81 Mark
A business sells some of its inventory for $500 on credit to a customer. The inventory cost $600. What is the effect of this transaction on the statement of financial position?
Adecrease by $100, decrease by $100
Bdecrease by $100, increase by $100
Cincrease by $100, decrease by $100
Dincrease by $100, increase by $100
✓ Correct answer
A: decrease by $100, decrease by $100
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