Question
Examine the financial statements effects template below. Then select the answer that best describes the possible transaction. Balance Sheet Income Statement Transaction Cash Asset +
Examine the financial statements effects template below. Then select the answer that best describes the possible transaction.
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| Income Statement
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| Transaction | Cash Asset | + | Noncash Assets | = | Liabil- ities | + | Contrib. Capital | + | Earned Capital |
| Revenues |
| Expenses |
| ? | -120 |
| +600 | = | +480 |
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Group of answer choices
Repaying accounts payable of $480, using cash.
Selling $600 merchandise on account that has an inventory value of $120.
Purchase inventory of $600 paying $120 cash, and putting $480 on account.
Purchase $600 of equipment on account
None of the above
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Fixed Income Analysis
Authors: Barbara S. Petitt
5th Edition
1119850541, 978-1119850540
