Which of the following statements is false when a company sells inventory costing $900 for $1,500 cash?
A)Current assets increase $600.
B)Gross profit increases $1,500.
C)Stockholders' equity increases $600.
D)Net sales increases $1,500.

Question

Quizplus · Accepted Answer

Gross profit is calculated as sales minus the cost of goods sold. In this case, the gross profit would be $1,500 (sales) - $900 (cost) = $600, not $1,500.

Which of the Following Statements Is False When a Company