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Commerce · Q1831

Accounting

Graduate and Post Graduate · Commerce · question 1831

Q1831

Sale of an asset on credit at a price higher than written down value of the asset, would

A.
leave owner's equity unaffected
B.
increase owner's equity to the extent of less value
C.
increase owner's equity by the amount of sale
D.
increase owner's equity to the extent of profit on sale
Answer

Answer: Option D

Solution

Answer: Option D
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