Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
Statement of Financial Position

-The above diagram shows a statement of financial position for a certain company.All quantities shown are in millions of dollars.How would the balance sheet change if the company's long-term assets were judged to depreciate at an extra $5 million per year?

• A)Net property,plant,and equipment would rise to $126 million,and Total Assets and Stockholders' Equity would be adjusted accordingly.
• B)Net property,plant,and equipment would fall to $116 million,and Total Assets and Stockholders' Equity would be adjusted accordingly.
• C)Long-Term Liabilities would rise to $182 million,and Total Liabilities and Stockholders' Equity would would be adjusted accordingly.
• D)Long-Term Liabilities would fall to $172 million,and Total Liabilities and Stockholders' Equity would be adjusted accordingly.
• E)Net property,plant,and equipment would be unchanged,and Total Assets and Stockholders' Equity would also remain the same.

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Definitions:

Behavior

The actions or reactions of individuals or groups in response to external or internal stimuli.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit individuals or groups.

Personal Interests

Individual hobbies, desires, or activities that a person is passionate about or enjoys in their personal time.

Countervailing Power

A concept where power in a market or industry is distributed in such a way that no single entity can dominate decisions or outcomes, effectively balancing the power dynamics.