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:

Coercive Power

A form of power that relies on the ability to punish or constrain others to comply with orders or requests.

Leader's Power

The capacity of a leader to influence, motivate, and enable others to contribute toward organizational success.

Merit Pay Raises

Salary increases awarded to employees based on their job performance, as a reward for their contributions to the organization's success.

Coercive Power

The ability of an individual or group to influence others' behavior by imposing threats or penalties.