What Is the Effect on the Statement of Financial Position

question 37

Multiple Choice

What is the effect on the statement of financial position when the business buys a car for $35,000, paying a deposit of $10,000 and promising to pay the balance within 60 days?

• A)Increase asset vehicle by $5,000; decrease asset bank by $5,000.
• B)Increase asset vehicle by $35,000; decrease asset bank by $10,000; increase liability accounts payable by $25,000.
• C)Increase asset vehicle by $25,000; decrease asset bank by $5,000; increase liability accounts payable by $20,000.
• D)None of the above.

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Definitions:

Tanner Staging

A system that assesses the physical development in children, adolescents, and adults based on external primary and secondary sex characteristics.

Sexual Development

A complex biological, physiological, and emotional process that starts in human infancy and continues into late adulthood, encompassing physical and psychological changes.

Diagnostic Tool

An instrument or technique used to identify the nature or cause of a condition, disease, or injury.

Menopause

The period marking the end of a woman's reproductive years, characterized by the cessation of menstruation.