Consider the following information.
(i)$20 000 of accounts payable was paid.
(ii)$100 000 from accounts receivable was received.
(iii)Inventory of $200 000 was purchased on credit.
(iv)Credit sales of $700 000 (cost of goods sold was $450 000)were made.
(v)$10 000 of prepayments expired during the month.
Assets increased during the period by:
A) $220 000
B) $250 000
C) $420 000
D) $430 000.

Question

Consider the following information. 
(i)$20 000 of accounts payable was paid.
(ii)$100 000 from accounts receivable was received.
(iii)Inventory of $200 000 was purchased on credit.
(iv)Credit sales of $700 000 (cost of goods sold was $450 000)were made.
(v)$10 000 of prepayments expired during the month.
Assets increased during the period by:
A) $220 000
B) $250 000
C) $420 000
D) $430 000.

Quizplus · Accepted Answer

The Answer of Consider the following information. 
(i)$20 000 of accounts payable was paid.
(ii)$100 000 from accounts receivable was received.
(iii)Inventory of $200 000 was purchased on credit.
(iv)Credit sales of $700 000 (cost of goods sold was $450 000)were made.
(v)$10 000 of prepayments expired during the month.
Assets increased during the period by:
A) $220 000
B) $250 000
C) $420 000
D) $430 000.

Consider the Following Information