What Is the Effect on the Balance Sheet If a Company

question 192

Multiple Choice

What is the effect on the balance sheet if a company purchases $100 of supplies using cash?

• A)Total assets will remain the same.
• B)Total assets will decrease.
• C)Liabilities will decrease.
• D)Total assets will increase.

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Definitions:

Human Capital Investment

Spending on education, training, health, and other personal capacities that improve an individual's productivity and quality of life.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of firms to adjust to market changes.

Long Run

A period in which all factors of production and costs are variable, allowing full industry adjustment.