Alpha Company Has Assets of $600,000, Liabilities of $250,000, and Equity

question 39

Multiple Choice

Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?

• A) Assets increase by $75,000 and liabilities increase by $75,000.
• B) Liabilities increase by $75,000 and expenses decrease by $75,000.
• C) Assets increase by $75,000 and expenses decrease by $75,000.
• D) Assets increase by $75,000 and expenses increase by $75,000.
• E) Assets decrease by $75,000 and expenses decrease by $75,000.

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Definitions:

Shipped on Time

Shipped on time refers to the process of sending goods to the intended recipient within the promised or scheduled delivery timeframe.

Dollar Fill Rate

A metric used to measure the value of product shipped or delivered as a percentage of the total value of product ordered.

Total Value

The complete worth of a product or service, including both tangible and intangible factors, that contribute to its perceived value by the consumer.

Performance Measurement Metrics

Quantitative indicators used to assess and monitor the performance of processes, employees, departments, or organizations against key objectives.