When Equipment Is Purchased with a Cash Down Payment and a Signed

question 20

Multiple Choice

When equipment is purchased with a cash down payment and a signed note for the balance, the net effect will be

• A) Only an increase in assets
• B) Only a decrease in liabilities
• C) Only a decrease in assets
• D) Both an increase in assets and an increase in liabilities

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Definitions:

Flexible Organizational Structure

An adaptable configuration within an organization that facilitates response to changes in the environment or internal demands.

Span of Control

The number of individuals or resources one manager or leader directly supervises or oversees.

Formalization

The extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated.

Creativity

The ability to produce original and valuable ideas or solutions.