Which of the following statements does not accurately describe the affect of the sale of inventory at a profit on the financial statements?
A)Income from operations and current assets both increase.
B)Operating income and gross profit both increase.
C)Net income and earnings per share both increase.
D)Current assets don't change and stockholders' equity increases.

Question

Quizplus · Accepted Answer

Current assets increase because the increase in either cash or accounts receivable is greater than the decrease in inventory.

Which of the Following Statements Does Not Accurately Describe the Affect