Total Assets, Liabilities, and Shareholders' Equity Are $7,000, $5,000, and $2,000

question 41

Essay

Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $2,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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Definitions:

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work, which can significantly impact productivity and retention.

Constraints

Limitations or restrictions that affect the planning, process, or outcome of an activity or system.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing between options.

Decision Criterion

The rules or standards used to choose among alternatives in decision-making processes.