What Is the Overall Effect on the Statement of Financial

question 12

Multiple Choice

What is the overall effect on the statement of financial position when the business sells inventory for a profit of $5,000?

• A)Increase total assets $3,000; decrease total equity $3,000.
• B)Increase total assets $5,000; increase total equity $5,000.
• C)No change in total assets; no change in total equity.
• D)None of the above.

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Definitions:

Organizational Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit, division, department, or an operating unit within an organization.

Bureaucratic Organizational Structure

An organizational model characterized by a hierarchy of authority, formalized rules and procedures, and impersonal relationships.

Flexible Organization Structure

Describes an organizational framework that can easily adapt to changes, allowing for modifications in structures and processes.

Horizontal Differentiation

The division of roles and responsibilities within an organization that focuses on the specialization and expertise of its members, rather than their rank or status.