The credit sale of an asset at cost price:

Name: The credit sale of an asset at cost price:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When an asset is sold on credit at cost price, the asset account decreases by the amount of the asset sold, but the accounts receivable or the amount owed by the customer increases by the same amount. Therefore, the total assets remain constant. There is no impact on liabilities as the sale has not been settled yet, and hence, there is no increase or decrease in liabilities.

The Credit Sale of an Asset at Cost Price