Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company purchases $25,000 of inventory in januar

A company purchases $25,000 of inventory in January 20X6 and will pay for it in...

80.2K

Verified Solution

Question

Accounting

A company purchases $25,000 of inventory in January 20X6 and will pay for it in March 20X6, which of the following statements is false?

a. The company will report accounts payable of $25,000 in February 20X6Incorrect

b. The statement of cash flows will report an operating cash outflow of $25,000 in March 20X6

c. The accounts payable for this purchase be will zero in March 20X6

d. Cost of goods sold will increase by $25,000 in January 20X6

e. The income statement will report the $25,000 as cost of goods sold in January 20X6 when they are purchased

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students