Inventory and the Accounting Equation

Avery made a credit sale of inventory. This transaction will

• Increase Assets and Increase A/C Receivable

• Decrease Assets and Decrease A/C Receivable

• Increase GST Payable

• None of the Above

Elijah made a cash sale of Inventory. This will

• Decrease Inventory and Increase Bank and Increase GST Increase revenues and increase Cost of Goods Sold

• Increase Inventory and Decrease Bank and Increase GST Increase revenues and decrease Cost of Sales

• Decrease Inventory and Increase Bank and Increase GST Increase revenues and increase Cost of Sales

• Increase Owners equity

Benjamin made a purchase return. This will

• Increase Inventory and Decrease Accounts Payable and GST

• Decrease Inventory and Decrease Accounts Payable and GST

• Decrease Inventory and Decrease Accounts Payable and Increase GST

• Increase Inventory and Increase Accounts Payable and Decrease GST

Noah made a credit purchase of inventory. This transaction will

• Decrease Inventory and Decrease Accounts Payable and Increase GST

• Increase Inventory and Decrease Accounts Payable and Increase GST

• Increase Inventory and Increase Accounts Payable and Increase GST

• Increase Inventory and Increase Accounts Payable and Decrease GST

Scarlett donated some of her store's inventory to a local charity. This donation will

• Increase Inventory and Increase Owners equity

• Decrease Inventory and Decrease Bank

• Decrease Inventory and Decrease Net Profit

• Decrease Inventory and Increase Net Profit

Daniel made a sales return of inventory. This will

• Decrease Inventory and decrease Bank and GST

• Decrease Inventory, decrease Accounts Receivable and decrease GST

• Decrease Inventory, decrease Accounts Payable and decrease GST

• Increase Inventory, decrease Accounts Receivable, decrease GST and decrease Owners Equity

Elijah is managing a small store and decides to take some inventory for personal use. This action will

• Decrease Owners equity

• Decrease Bank and Owners Equity

• Decrease Inventory and Increase Owners equity

• Decrease Inventory and Decrease Owners equity

Elijah's store experienced an inventory loss. This will

• Decrease Inventory and Decrease Owners equity

• Increase Inventory and Increase Bank

• Increase Inventory and Increase Owners equity

• Decrease Inventory and Increase GST

Avery is managing a small store and is considering whether drawings of inventory should be classified as an expense. What is the correct classification?

• True

• False

Mia noticed that some inventory was missing from the store. A theft of inventory will

• Increase Inventory and Increase Owners equity

• Decrease Inventory and Decrease Bank

• Decrease Inventory and Decrease Net Profit

• Decrease Inventory and Increase Net Profit