a-company-sells-a-product-for-200-that-cost-120-to-purchase-what-is-the-net-impa

Question

A company sells a product for $$200 that cost 120 to $$purchase. What is the net impact on equity under a perpetual inventory system?

Accepted Answer

Equity increases by $80.

Answer

Equity increases by $200.

Answer

Equity remains unchanged.

Answer

Equity decreases by $120.

A company sells a product for \$200 that cost \$120 to purchase. What is the net impact on equity under a perpetual inventory system?