Philip Corporation Purchased Equipment on Account

question 83

Multiple Choice

Philip Corporation purchased equipment on account.What is the effect of this transaction?

• A)Cash will decrease and equipment will increase.
• B)Total assets will remain unchanged.
• C)Cash flow from Investing Activities will decrease.
• D)Total assets and total liabilities will both increase.

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Definitions:

Phenylketonuria

A genetic disorder characterized by the body's inability to break down the amino acid phenylalanine, leading to its accumulation.

Metabolism

The sum of the chemical reactions that occur in a cell.

Autosomal Dominant

A pattern of inheritance where a trait can be expressed in an individual who has one copy of a gene associated with a trait.

Heterozygote

An organism having two different alleles of a specific gene, resulting in a mixed genotype.