If a Company Has Excess Space in Its Building That

question 35

Multiple Choice

If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation during the first month?

• A) Liabilities would decrease $700 and equity would increase $700.
• B) Assets would increase $700 and equity would increase $700.
• C) Assets would decrease $700 and equity would increase $700.
• D) Assets would increase $700 and equity would decrease $700.
• E) Assets would decrease $700 and liabilities would decrease $700.

---

Definitions:

Plasma Membrane

The plasma membrane is a biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Glycocalyx

A dense layer of glycoproteins and polysaccharides that surrounds the plasma membrane of cells, important for cell recognition and interaction.

Phospholipid Bilayer

A fundamental structure in all cell membranes, consisting of two layers of phospholipids, which provides a barrier that marks the boundaries of a cell.

Selectively Permeable

A property of cell membranes that allows certain molecules or ions to pass through it by means of active or passive transport, while blocking others.