Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Balance Sheet Assets a. 4,000 b. 4,240 C. 4,240 d. 4,240 Multiple Choice O O O Liabilities + 240 240 240 240 O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA
Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Balance Sheet Assets a. 4,000 b. 4,240 C. 4,240 d. 4,240 Multiple Choice O O O Liabilities + 240 240 240 240 O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.5P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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