An Increase in Total Assets

question 282

Multiple Choice

An increase in total assets:

• A) Means that net working capital is also increasing.
• B) Requires an investment in fixed assets.
• C) Means that shareholders' equity must also increase.
• D) Must be offset by an equal increase in liabilities and shareholders' equity.
• E) Can only occur when a firm has positive net income.

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Definitions:

Covalently Bonded

Refers to atoms connected by the sharing of pairs of electrons, creating a stable arrangement of atomic components.

Attraction

The force or influence that draws objects or individuals together.

Covalent Bond

A chemical bond formed by the sharing of one or more pairs of electrons between atoms in a molecule, contributing to the molecule's stability.

Ionic Bond

A chemical bond formed between two ions with opposite charges, typically between a metal and a nonmetal.