What Is the Effect on the Balance Sheet of Recording

question 133

Multiple Choice

What is the effect on the balance sheet of recording a $200 cash purchase of raw materials?

• A) Assets decrease by $200 and equity decreases by $200.
• B) Assets and equity do not change.
• C) Assets increase by $200 and equity increases by $200.
• D) Assets increase by $200 and equity does not change.

---

Definitions:

Boards of Directors

Groups of elected or appointed members who jointly oversee the activities of a company or organization.

Nonverbal Communication

The process of conveying a message or piece of information without the use of spoken or written language, instead through body language, gestures, facial expressions, and tone of voice.

Face-to-Face Communication

Direct interaction between two or more people, where participants can see and respond to each other in real-time.

Total Message

encompasses all aspects of communication, including verbal content, non-verbal cues, and contextual factors, contributing to the overall understanding between parties.