The Purchase of an Asset on Credit

question 73

Multiple Choice

The purchase of an asset on credit

• A) has no effect on total assets.
• B) increases assets and liabilities.
• C) increases assets and shareholders' equity.
• D) decreases assets and increases liabilities.

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Definitions:

Adaptation

The process by which organisms adjust to new environments or changes in their current environment.

Environment

The surrounding conditions, influences, or forces which impact the growth, development, and survival of organisms, including humans.

Psychosexual Development

In Freudian theory, an unvarying sequence of stages of childhood personality development in which gratification shifts from the mouth to the anus and then to the genitals.

Latency Stage

A phase in Freudian psychosexual development occurring approximately between the ages of 5 and puberty, characterized by dormant sexual feelings.