A company sells inventory on credit for $10 000 which originally cost $4000. Which of the following would not be a result of recording this transaction in the worksheet?
A) An increase in total assets and revenue
B) An increase in total assets, revenue and expenses
C) An increase in revenue and expenses, but no effect on total assets
D) An increase in profit

Question

Quizplus · Accepted Answer

When inventory is sold on credit, accounts receivable (an asset) increases, and revenue increases, leading to an increase in total assets. Expenses also increase due to the cost of goods sold, but total assets are still affected.

A Company Sells Inventory on Credit for $10 000 Which