During the most recent accounting period, a business sold inventories for £1,650 on credit that it had originally purchased for £1,100. How would this transaction affect the statement of financial position of the business?

A. Decrease inventories £1,650, increase trade receivables £1,650

B. Decrease inventories £1,100, increase trade receivables £1,650, increase equity £550

C. Decrease inventories £1,100, increase trade receivables £1,650, decrease equity £550

D. Decrease inventories £1,650, increase trade receivables £1,650, increase equity £550

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is B Decrease invent... View the full answer