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:

Practice

The actual application or use of an idea, belief, or method, as opposed to theories relating to it.

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Southern Society

Refers to the social structure and culture of the American South, historically characterized by agrarian economy, plantation system, and social stratification including slavery.