Selling a long-term asset is an example of:

A. Operating activity

B. Investing Activity

C. Financing Activity

D. non cash investing and financing activity

The accrual accounting term used to indicate recording an expense before paying cash for the item is

A. deferral

B. Accrual

C. Depreciation

D. prepayment

XYZ Company recorded the following events involving a recent merchandise purchase.

received goods for $50,000, terms 2/10, n/30

returned $1,000 of the shipment for credit due to damaged goods

Paid $1,500 for freight in

Paid the invoice with the discount period

As a result of these events, the company’s merchandise inventory

A. increased by $50,500

B. increased by $49,500

C. increased by $49, 470

D. increased by $49,520