1. Choose the correct answer:

2.1. Which of the following reflects the effect on the accounting equation of a sale of finished goods inventory, on credit?

A. Assets decrease; owners equity unchanged.

B. Assets decrease; owners equity increases.

C. Assets increase; owners equity increases.

D. Assets increase; owners equity decreases.

2.2. Which of the following economic actions increases the amount of current assets?

A. A receipt of cash from debtors.

B. A purchase of raw material inventory, on credit.

C. A purchase of raw material inventory, for cash.

D. A payment to creditors.