Inventory and the Accounting equation

A credit sale of inventory will

• Increase Assets and Increase A/C Receivable

• Decrease Assets and Decrease A/C Receivable

• Increase GST Payable

• None of the Above

A cash sale of Inventory will

• Decrease Inventory and Increase Bank and Decrease GST

• Increase Assets; Increase Liabilities and Owners Equity

• Increase Inventory and Decrease Bank and Increase GST

• Increase Owners equity

Inventory Loss will

• Increase assets, decrease liabilities and decrease Owners Equity

• Increase assets, increase liabilities and decrease Owners Equity

• Decrease assets, and decrease Owners Equity

• Decrease assets, decrease liabilities and decrease Owners Equity

A purchase return 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

A credit purchase of inventory 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

A donation 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

A sales return of inventory 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

Drawings of inventory will

• Decrease Owners equity

• Decrease Bank and Owners Equity

• Decrease Inventory and Increase Owners equity

• Decrease Inventory and Decrease Owners equity

An inventory Gain will

• Decrease Inventory and Increase Owners equity

• Increase Inventory and Increase Bank

• Increase Inventory and Increase Owners equity

• Decrease Inventory and Increase GST

Do you love Accounting?

• Yes!

• Why not?!

• How would I say no!

• Oh god Accounting is my life!