Use the Table for the Question(s)below

question 100

Multiple Choice

Use the table for the question(s) below.
-The above diagram shows a balance sheet for a certain company.All quantities shown are in millions of dollars.How would the balance sheet change if the company's long-term assets were judged to depreciate at an extra $5 million per year?

• A)Net property,plant,and equipment would rise to $126 million,and Total Assets and Stockholders' Equity would be adjusted accordingly.
• B)Net property,plant,and equipment would fall to $116 million,and Total Assets and Stockholders' Equity would be adjusted accordingly.
• C)Long-Term Liabilities would rise to $182 million,and Total Liabilities and Stockholders' Equity would be adjusted accordingly.
• D)Long-Term Liabilities would fall to $172 million,and Total Liabilities and Stockholders' Equity would be adjusted accordingly.

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Definitions:

Balance of Payments

A summary of all transactions between residents of a country and the rest of the world over a specific period, including trade, investment, and financial transfers.

Exchange Rates

The value of one currency expressed in terms of another currency, determining how much foreign currency can be exchanged for a unit of domestic currency.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

International Flows

The movement of goods, services, capital, and people across international borders.