The Business Hires an Office Manager at $700 a Week

question 42

Multiple Choice

The business hires an office manager at $700 a week.The immediate effect on the accounting equation is to:

• A)increase equity by $700 and decrease the asset cash by $700
• B)decrease the asset cash by $700 and decrease equity by $700
• C)no effect as this is not a business transaction
• D)increase wages by $700 and decrease equity by $700

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Definitions:

Small Lot Sizes

Production or ordering in limited quantities, which can enhance flexibility and reduce inventory costs.

Just-In-Time Production

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.