Which of the Following Changes Describes the Purchase of $3,000

question 90

Multiple Choice

Which of the following changes describes the purchase of $3,000 of inventory on credit?

• A)Assets and shareholders' equity increase by $3,000.
• B)Assets and shareholders' equity decrease by $3,000.
• C)Assets and liabilities increase by $3,000.
• D)Assets and liabilities decrease by $3,000.

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Definitions:

Gasoline Falls

Presumed to refer to a reduction in gasoline prices, though not a standard economic term.

Fuel-efficient Cars

Automobiles designed to use less fuel for the same distance traveled compared to standard vehicles, thus reducing operational costs and environmental impact.

Public Transportation

A system of vehicles such as buses and trains that operate at regular times on fixed routes and are used by the public.

In-state Students

Students enrolled in a public university or college within the same state in which they are residents, often eligible for lower tuition rates.