What Are the Effects on the Accounting Equation from the Purchase

question 75

Multiple Choice

What are the effects on the accounting equation from the purchase of a short-term investment?

• A)Assets and stockholders' equity decrease.
• B)No effects-assets increase and decrease by the same amount.
• C)Assets and liabilities decrease.
• D)Stockholders' equity decreases and liabilities increase.

---

Definitions:

Impaired Swallowing

Difficulty or inability to swallow properly, which may interfere with eating and drinking.

Hemorrhage

Excessive bleeding or the escape of blood from a ruptured blood vessel, either internally or externally.

Acute Pain

Short-term pain that serves as a direct response to injury, disease, or inflammation, usually lasting less than six months.

Tissue Integrity

concerns the state of being whole, intact, and functioning of bodily tissues, significant in healing and health maintenance.