During the most recent accounting period, a business sold inventories for £1,500 on credit that it had originally purchased for £1,000.How would this transaction affect the statement of financial position of the business?O A. Decrease inventories £1,500, increase trade receivables £1,500B. Decrease inventories £1,500, increase trade receivables £1,500, increase equity £500C. Decrease inventories £1,000, increase trade receivables £1,500, increase equity £500O D. Decrease inventories £1,000, increase trade receivables £1,500, decrease equity £500

Note: Due to Sales on account Trade receivables will be increased by the amount of sales and…

During the most recent accounting period, a business sold inventories for £1,500 on credit that it had originally purchased for £1,000. How would this transaction affect the statement of financial position of the business? O A. Decrease inventories £1,500, increase trade receivables £1,500 O B. Decrease inventories £1,500, increase trade receivables £1,500, increase equity £500 O C. Decrease inventories £1,000, increase trade receivables £1,500, increase equity £500 O D. Decrease inventories £1,000, increase trade receivables £1,500, decrease equity £500

During the most recent accounting period, a business sold inventories for £1,500 on credit that it had originally purchased for £1,000. How would this transaction affect the statement of financial position of the business? O A. Decrease inventories £1,500, increase trade receivables £1,500 O B. Decrease inventories £1,500, increase trade receivables £1,500, increase equity £500 O C. Decrease inventories £1,000, increase trade receivables £1,500, increase equity £500 O D. Decrease inventories £1,000, increase trade receivables £1,500, decrease equity £500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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