If both sales were cash sales, the total increase in assets would be the sum of the cash increases, which is:

If both sales were cash sales, the total increase in assets would be the sum of the cash increases, which is:

• A. $500
• B. $300
• C. $800
• D. $0

Answer: (C)

When a sale is paid in cash, the cash account rises immediately, so there is an increase in assets equal to the cash received. If there are two cash sales, you add both cash receipts together to get the total increase in assets from those transactions. For example, if one sale brought in $500 and the other $300, the total cash received is $800, so the total increase in assets is $800. The other amounts correspond to only one sale or to no cash inflow, which is why they don’t represent the combined effect of two cash sales.

When a sale is paid in cash, the cash account rises immediately, so there is an increase in assets equal to the cash received. If there are two cash sales, you add both cash receipts together to get the total increase in assets from those transactions. For example, if one sale brought in $500 and the other $300, the total cash received is $800, so the total increase in assets is $800. The other amounts correspond to only one sale or to no cash inflow, which is why they don’t represent the combined effect of two cash sales.