a-company-sells-a-product-for-100-that-cost-60-to-purchase-under-a-perpetual-inv

Question

A company sells a product for $$100 that cost 60 to $$purchase. Under a perpetual inventory system, what is the net impact on the accounting equation?

Accepted Answer

Assets increase by $$40, equity increases by 40.$$

Answer

Assets increase by $$100, equity increases by 100.$$

Answer

Assets increase by $$60, equity increases by 60.$$

Answer

Assets decrease by $$60, equity decreases by 60.$$

A company sells a product for \$100 that cost \$60 to purchase. Under a perpetual inventory system, what is the net impact on the accounting equation?