Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 34)
What is the impact on the accounting equation when a company sells goods for cash?
Assets increase, liabilities increase.
Assets decrease, liabilities increase.
Assets increase, equity increases.
Assets decrease, equity decreases.
Explanation
Cash (an asset) increases, and sales revenue (increasing equity) is recognized.
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