What Effect Does the Purchase of Store Equipment on Account

question 13

Multiple Choice

What effect does the purchase of store equipment on account have on the balance sheet equation?

• A)Assets increase and liabilities decrease
• B)Assets increase and liabilities increase
• C)Assets decrease and liabilities decrease
• D)Assets decrease and liabilities increase
• E)There is no effect on the accounting equation.

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Definitions:

Dividend Increases

Dividend increases refer to the raising of the dividend amount paid out by a company to its shareholders over time.

EPS Growth Rate

The annual rate at which a company's earnings per share increases, indicating the company's profitability over time.

Investors Rate of Return

The percentage of return investors expect to earn on their investment, considering both the income and the appreciation of the investment.

Annual Dividend

The total dividend payments made to shareholders in a year, typically expressed per share.