alleryStart learning →Inventory bought for 10,000 on credit is sold for 15,000 cash. Equity rises by how much?
A25,000
B15,000
C5,000
D10,000
Answer & Solution
Correct answer: C. 5,000
Sale price 15,000 less cost 10,000 leaves a profit of 5,000, which adds to equity.
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