Which of the Following Would Not Describe the Effects of an Asset

question 72

Multiple Choice

Which of the following would not describe the effects of an asset source transaction on the accounting equation?
$$\begin{array} { | l | c | l | c | c | c | c | c | } \hline & \text { Assets } & = & \text { Linbilities } & + & \begin{array} { c } \text { Corrunon } \\\text { Strek }\end{array} & + & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} \\\hline \text { A } & + & = & + & + & \text { NA } & + & \text { NA } \\\hline \text { B. } & + & = & \text { NA } & + & \text { NA } & + & + \\\hline \text { C. } & + & = & \text { NA } & + & + & + & \text { NA } \\\hline \text { D. } & + - & = & \text { NA } & + & \text { NA } & + & \text { NA } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Variable Cost

A cost that varies in direct proportion to changes in the level of activity or production volume.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Total Miles Driven

The cumulative distance that a vehicle has traveled, often used for business accounting or to monitor vehicle performance and maintenance needs.

Gasoline Costs

The expense incurred from purchasing gasoline, often considered a significant variable cost for companies dependent on transportation.