Effect on financial statements of a recording


Question: Which of the following items (a thru d) is the effect on financial statements of a recording a $100 purchase of raw materials?

assests = liab + Equity Rev - Exp = Net inc. Cash Flow

a) (100) NA (100) NA - 100 (100) NA

b) 100 NA 100 NA - 100 (100) (100)

c) NA NA NA NA NA NA (100)

d) NA NA NA NA - 100 (100) NA

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Finance Basics: Effect on financial statements of a recording
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