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

Apply decision-making criteria (maximax, maximin, equally likely, and expected monetary value) under different conditions of uncertainty and risk.

Calculate and understand the concept of expected monetary value (EMV) for different decision scenarios.

Distinguish between different decision-making criteria and understand their practical applications.

Analyze decision problems using decision trees and understand their advantages over decision tables.