Merchandise inventory costing $10 000 was sold to customers on credit for $15 000. What amount of revenue and cash flow resulted from the sale of the inventory? RevenueCash Flow
A) $5000 $15 000
B) $10 000 $10 000
C) $15 000 $0
D) $5000$0

Question

Quizplus · Accepted Answer

The revenue generated by the sale is $15,000, which is the amount of the credit sale. However, the cash flow resulting from the sale is $0, as no cash has been received yet. The sale was made on credit, which means the customer will pay at a later date. Therefore, the increase in revenue does not result in an immediate increase in cash flow.

Merchandise Inventory Costing $10 000 Was Sold to Customers on Credit