Which of the Following Properly Describes the Impact on the Financial

question 125

Multiple Choice

Which of the following properly describes the impact on the financial statements when a company borrows $20,000 from a local bank?

• A)Net income increases $20,000.
• B)Assets decrease $20,000.
• C)Stockholders' equity increases $20,000.
• D)Liabilities increase $20,000.

Distinguish between different types of reward systems and their application in organizational settings.

Recognize the importance of job evaluations in determining the worth of each job within the organization.

Identify the role of positive psychology elements, such as mental imagery and positive self-talk, in enhancing employee motivation and performance.

Appreciate the historical context and current applications of job specialization and rotation.

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Definitions:

Accelerated Depreciation

A method of depreciation that allows a larger portion of an asset’s cost to be written off in the early years of useful life, decreasing taxable income.

Straight-Line Method

A method of calculating depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.

Financial Accounting

The branch of accounting that focuses on the preparation of financial statements for external users.

Extraordinary Gains and Losses

Unusual and infrequent events that significantly affect a company's financial performance, reported separately on the income statement to provide a clearer picture of ongoing operations.