Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 34)
What is the effect of a credit sale on a company's assets and equity?
Assets increase, equity increases.
Assets decrease, equity increases.
Assets increase, equity decreases.
Assets and equity stay the same.
Explanation
The accounts receivable (asset) and the sales revenue (increase equity) increase.
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