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Merchandise Purchased on Account by a Company Has No Effect

Question 131

Multiple Choice

Merchandise purchased on account by a company has no effect on its working capital because:​


A) ​inventory and accounts payable are increased by the same amount.
B) ​inventory and accounts receivable are increased by the same amount.
C) ​cash and inventory are increased by the same amount.
D) ​cash and inventory are decreased by the same amount.

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