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:

Crops

Plants cultivated by agriculturalists for use as food, feed, fiber, or fuel.

Trade Name

The name under which a business operates and is known to the public, distinct from the company's legal name.

Franchise

A business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.