The Purchase of Office Equipment on Credit Has What Effect

question 11

Multiple Choice

The purchase of office equipment on credit has what effect on the accounting equation?

• A)Assets decrease and stockholders' equity decreases.
• B)Liabilities increase and stockholders' equity decreases.
• C)Assets increase and liabilities increase.
• D)Assets decrease and liabilities decrease.

---

Definitions:

Ethics Training Program

A structured educational initiative designed to teach individuals about ethical principles and how to apply them in professional and personal decision-making.

Whistle Blowing

The act of exposing any kind of information or activity deemed illegal, unethical, or not correct within an organization.

Company Credit Card

A credit card issued to employees for making authorized business expenditures on behalf of the company.

Ethical Screen

A mechanism designed to prevent conflicts of interest or ethical issues within an organization or profession by separating conflicting parties or interests.