Which of the Following Transactions Would Have No Effect on Total

question 31

Multiple Choice

Which of the following transactions would have no effect on total assets, total liabilities, or owner's equity?

• A)payment of a liability
• B)borrowing cash by issuing a note payable
• C)purchasing supplies for cash
• D)purchasing supplies on account

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Definitions:

Special Price

A temporary discounted offer or a negotiated price lower than the usual list price, often used to stimulate demand or reward customers.

Variable Costs

Costs that vary directly with the level of production or the volume of services provided.

Special Order

A one-time order that is not normally part of the company's standard operations.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.