What Is the Effect on the Balance Sheet When the Business

question 36

Multiple Choice

What is the effect on the balance sheet when the business buys a car for $25,000, paying a deposit of $5,000 and promising to pay the balance within 60 days?

• A) increase asset vehicle by $20,000; increase liability accounts payable by $20,000
• B) increase asset vehicle by $25,000; decrease asset bank by $5,000; increase liability accounts payable by $20,000
• C) increase asset vehicle by $5,000; decrease asset bank by $5,000
• D) none of the above

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Definitions:

Exploratory Maturation

The process of acquiring new skills and knowledge through active engagement and experimentation, particularly referenced in developmental stages.

Genetically Determined Traits

Genetically determined traits are characteristics that are passed down from parents to offspring through genes, including physical and some behavioral traits.

Behavior

Behavior encompasses the actions and reactions of an organism, often in response to its environment or stimuli.

Ego

Refers to the part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.