A Purchase of a Vehicle for Cash Would Have What

question 42

Multiple Choice

A purchase of a vehicle for cash would have what effect on the accounting equation?

• A)Total asset amount remains the same.
• B)Total liabilities are overstated.
• C)Total owner's equity is overstated.
• D)Both A and B are correct.

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Definitions:

Formed

Established or created with a specific structure or intended purpose.

UN General Assembly

A principal organ of the United Nations, comprising all member states, it serves as a forum for deliberating international issues covered by the UN Charter.

Simple Majority Vote

A voting system where the highest number of votes cast for any one candidate or option surpasses the number of votes for any other, without requiring more than half of total votes.

Permanent Member

An individual or state that holds constant membership in an organization or committee, often with special voting rights, such as the five permanent members of the UN Security Council.