What Is the Overall Effect on the Balance Sheet When

question 2

Multiple Choice

What is the overall effect on the balance sheet when the business sells inventory for a profit of $3,000?

• A) no change in total assets; no change in total equity
• B) increase total assets by $3,000; increase total equity by $3,000
• C) increase total assets by $3,000; decrease total equity by $3,000
• D) none of the above

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Definitions:

Rewarded

The process or act of receiving a benefit, recognition, or reinforcement for one's actions or behavior, often used in the context of behaviorist theories of learning.

Internally Motivated

Driven by internal rewards, such as personal satisfaction, rather than external rewards like money or status.

Womb Envy

A concept in Neo-Freudian psychology suggesting that males may feel envy towards the biological abilities of females, such as pregnancy and childbirth.

Margaret Mahler

A psychoanalyst known for her work in child development and her theories on the separation-individuation process of infants.