Celery Company Has Assets of $150,000, Liabilities of $90,000, and Equity

question 150

Multiple Choice

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

• A) Assets, $5,000 increase, equity, $5,000 increase.
• B) Assets, $5,000 increase, equity, $5,000 decrease.
• C) Liabilities, $5,000 increase, equity, $5,000 decrease.
• D) Assets, $5,000 decrease, equity, $5,000 decrease.
• E) Assets, no effect; liabilities, no effect

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Definitions:

Economic Growth

An increase in a country's output of goods and services over time, often measured as the rate of change in real GDP.

Specialized Equipment

Machinery or tools designed for a specific task or industry, often crafted to perform particular functions that general equipment cannot.

Layout

The arrangement of elements or components within a given space, often relating to design, manufacturing, or architectural planning.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes and operations.