The accounting equation implies that: Assets + Liabilities = Equity.
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A company has inventory of 100 units at a cost of $10 each on June 1. On June 3, it purchased 200 units at $12 each. 120 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold? ( )
A. $1200.
B. $1240.
C. $1280.
D. $1300.
If assets are $99,000 , and liabilities are $32,000, then equity equals ( )
A. $32,000.
B. $67,000.
C. $99,000.
D. $131,000.
If the assets of a business increased $89,000 , during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have ( )
A. Increased $22,000.
B. Decreased $22,000.
C. Increased $89,000.
Decreased $156,000.
With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.( )