Multiple Choice
Nicholson Company sold inventory costing $1,000 for $3,000 on account.Nicholson Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?
A) liabilities will decrease by $2,000
B) liabilities will increase by $2,000
C) owners' equity will increase by $2,000
D) owners' equity will increase by $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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