A Company Disposes of $1 Million of Its Assets

question 12

Multiple Choice

A company disposes of $1 million of its assets.Which of the following could not be true about its effects on the basic accounting equation?

• A)Assets remain the same,and liabilities and shareholders' equity both decrease by $1 million.
• B)Assets decrease by $1 million,liabilities decrease by $1 million,and shareholders' equity is unchanged.
• C)Assets,liabilities,and shareholders' equity all remain the same.
• D)Assets decrease by $1 million,and liabilities and shareholders' equity both decrease by $500,000.

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Definitions:

Top Managers

The highest level of management, responsible for setting strategic goals and ensuring the organization's long-term success.

Long-Term Vision

A strategic outlook that focuses on achieving goals and objectives over an extended period, shaping the future direction of an individual or organization.

Organizational Objectives

The established goals that guide a company or organization's activities and direction, aimed at achieving overall success and fulfillment of its mission.

Cost Containment

Strategies or approaches implemented to control, reduce, or maintain the level of expenses.