QUESTION 28 Frames & Company sold merchandise on account for $30,000. The cost of the merchandise was $12,000. Which of the followin statements is true? a. The net change in assets was $18,000 and the income statement effect was $12,000. b. The net change in assets was $18,000 and the income statement effect was $18,000. c. The net change in assets was $30,000 and the income statement effect was $18,000. d. The net change in assets was $30,000 and the income statement effect was $30,000. QUESTION 29 If Martin Inc. sold $550,000 worth of merchandise, had $50,000 returned by the customer, and then the balance was paid by the customer within the 2% discount period, how much were Martin's net sales? a. $490,000 b. 5495,000 C5510,000 d. 5500,000 QUESTION 30 If the buyer is to pay the transportation cost for delivering merchandise, delivery terms are stated as: a. FOB net 30 b. FOB destination C. FOB seller d. FOB shipping point QUESTION 31 A. Asset Match each account with its proper classification. Equipment Salaries payable Capital stock Revenues B. Equity C. Retained Earnings D. Liability QUESTION 32 Match each account with the financial statement that it appears on. Notes payable Salaries expense # Dividends Cash receipts from customers A. Statement of Retained Earnings B. Income Statement C. Balance sheet D. Statement of cash flows QUESTION 33 What are the sources of financing for a business? a. creditors b. investors c. profitable operations d. all of the above