If a Company Has Excess Space in Its Building That

question 162

Multiple Choice

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation during the first month?

• A)Assets would decrease $700 and liabilities would decrease $700.
• B)Assets would decrease $700 and equity would increase $700.
• C)Assets would increase $700 and equity would decrease $700.
• D)Assets would increase $700 and equity would increase $700.
• E)Liabilities would decrease $700 and equity would increase $700.

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Definitions:

Transformational Leadership

A leadership style that inspires and motivates followers to exceed their own interests for the sake of the group or organization by focusing on higher ideals and moral values.

Employee-Centredness

An approach in management that focuses on the needs, well-being, and involvement of employees in decision-making processes.

Integrity

A personal virtue characterized by honesty, consistency, and ethicality in behavior and decisions.

Robert House

An influential scholar in the field of organizational behavior, known for his development of the Path-Goal Theory of leadership.