On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on production

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On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on production of a custom machine to be delivered in August 2006. Th is transaction would most likely result in which of the following on 30 April 2006?

A. No effect on liabilities.

B. A decrease in assets of $30,000.

C. An increase in liabilities of $30,000.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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Question Posted: Feb 14, 2024 09:01 AM

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On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on production

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The correct answer to this question is C An increase in liabilities of 30000 Heres why When Pinto Pr...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

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