The Local Bank Has Decided to Double the Number of Its

question 3

Multiple Choice

The local bank has decided to double the number of its local branch offices.How will this affect the bank's balance sheet?

• A) Total assets will increase.
• B) Total liabilities will increase.
• C) Total liabilities will decrease.
• D) Total assets will decrease.
• E) Total assets and total liabilities will both remain unchanged.

Understand the components and preparation of a multiple-step income statement.

Analyze the effects of sales, expenses, and transactions on net income, gross profit, and stockholders' equity.

Understand cash flow statement components and what constitutes an operating activity.

Calculate and understand stockholders' equity and how transactions affect its components.