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A. ABC buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the

A. ABC buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of ABC?

  1. Increase $8 B) No effect C) Decrease $5 D) Increase $3

B. ABC buys widgets for $5 cash and sells them on account for $8. If ABC owns a widget, from a cash flow perspective the widget is valued at?

A) $8 B) $3 C) $0 D) $5

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