Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive. Group of answer choices When you sell goods on account, income and cash flow increase When you sell goods on account, income increases and cash flow decreases When you sell goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income and cash flow increase When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive. Group of answer choices When you sell goods on account, income and cash flow increase When you sell goods on account, income increases and cash flow decreases When you sell goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income and cash flow increase When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E
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Question
Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive.
Group of answer choices
When you sell goods on account, income and cash flow increase
When you sell goods on account, income increases and cash flow decreases
When you sell goods on account, income increases and cash flow is unaffected
When you collect from customers that had previously purchased goods on account, income and cash flow increase
When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected
When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
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