The Acquisition of Inventory on Open Account Will

question 48

Multiple Choice

The acquisition of inventory on open account will:

• A) have no effect on the accounting equation
• B) increase liabilities and decrease stockholders' equity
• C) increase assets and liabilities
• D) decrease assets and decrease liabilities

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Definitions:

Instances

Specific examples or occurrences of a particular event or situation.

Acquire

To gain possession or control of something, often through effort or skill.

Nonconscious Processes

Mental processes occurring outside of and not available to conscious awareness.

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct answer to a problem.