Use the Table for the Question(s)below

question 47

Multiple Choice

Use the table for the question(s) below.
-The above diagram shows a balance sheet 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 $187 million, and Total Assets and Shareholders' Equity would be adjusted accordingly.
• B)Net property, plant, and equipment would fall to $177 million, and Total Assets and Shareholders' Equity would be adjusted accordingly.
• C)Long-term Liabilities would fall to $172 million, and Total Liabilities and Shareholders' Equity would be adjusted accordingly.
• D)Long-term Liabilities would rise to $182 million, and Total Liabilities and Shareholders' Equity would be adjusted accordingly.

---

Definitions:

Bottlenecks

Points of congestion in a production system where the workload arrives too quickly for the production process to handle, often leading to delays and lower efficiency.

Strategy

A plan of action designed to achieve a long-term or overall aim.

Total Cost Concept

An accounting approach that includes all costs - direct and indirect - associated with producing a good or service.

Government Agencies

Official organizations at the federal, state, or local level that administer and oversee specific functions or areas of public interest.