Profit-generating sale boosts assets and capital equally

Steps:

• Review each option's impact on assets (e.g., cash, inventory) and capital (owner's equity via income or contributions).
• Calculate net asset change: inflows minus outflows or reductions.
• Calculate capital change: via profit, expenses, or adjustments like liabilities.
• Select option where both changes are positive and equal.

Why B is correct:

• Per double-entry accounting, cash sale above cost increases assets net by profit (selling price inflow minus cost outflow) and records profit directly to capital via revenue less cost of goods sold.

Why the others are wrong:

• A: Cash inflow is less than accounts receivable reduction due to discount; both net assets and capital decrease by discount amount.
• C: Cash asset rises by total rent, but prepaid portion creates unearned revenue liability; capital rises only by earned portion.
• D: Owner's payment reduces loan liability (boosting capital) but nets zero asset change (cash inflow offset by outflow to creditor).

Final answer: B