What Is the Effect on the Statement of Financial Position

question 46

Multiple Choice

What is the effect on the statement of financial position of a business buying supplies for cash?

• A)increase asset supplies; increase asset bank.
• B)decrease asset supplies; decrease asset bank.
• C)decrease asset supplies; increase asset bank.
• D)increase asset supplies; decrease asset bank.

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Definitions:

Compensation

Refers to the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a total paid to the agent responsible for the business.

Human Capital

The total of competencies, wisdom, or intangible valuables of individuals that have the potential to yield financial value for the people, their places of employment, or their local area.

Labor-Market Discrimination

Occurs when two equally qualified individuals are treated differently based on arbitrary characteristics such as race, gender, religion, or nationality in employment decisions.