Question:What would the effect of purchasing inventory on credit be on both cash and profit?
  A. Cash decrease. Profit no effect.
  B. Cash no effect. Profit decrease.
  C. Cash decrease. Profit decrease.
  D. Cash no effect. Profit no effect.
  The correct answer is: Cash no effect, Profit no effect.
  解析The goods were purchased on credit and therefore there is no impact on cash.
  As the goods have not been sold there will also be no impact on profit.
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