Mize Company Provided $45,500 of Services on Account, and Collected

question 124

Multiple Choice

Mize Company provided $45,500 of services on account, and collected $38,000 from customers during the year. The company also incurred $37,000 of expenses on account, and paid $32,400 against its payables. How do these events impact the elements of the horizontal financial statements model?

• A)Total assets would increase.
• B)Total liabilities would increase.
• C)Total equity would increase.
• D)All of these answer choices are correct.

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Definitions:

Bad Faith

A term in existentialist philosophy where one denies their true self or nature, often out of self-deception or conforming to social norms.

Self-Determination Theory

A psychological theory of motivation that emphasizes the role of intrinsic motivations in personal growth and behavioral self-regulation.

Mindfulness

In positive psychology, the idea that one should be consciously aware of and in control of every moment of your subjective experience.

Flow

The totally absorbing experience of engaging in an activity that is valuable for its own sake. In flow, mood is slightly elevated and time seems to pass quickly.