What Is the Effect on the Statement of Financial Position

question 46

Multiple Choice

What is the effect on the statement of financial position of a business buying supplies for cash?

• A)Increase asset supplies; increase asset bank
• B)Decrease asset supplies; decrease asset bank
• C)Decrease asset supplies; increase asset bank
• D)Increase asset supplies; decrease asset bank

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Definitions:

Pepsinogen

An inactive precursor of pepsin, secreted by stomach lining cells, which is activated by stomach acid into the enzyme pepsin.

Salivary Glands

Exocrine glands in the mouth that produce saliva, which begins the process of digestion and helps maintain oral hygiene.

Mesentery Proper

A fold of the peritoneum connecting the intestines to the posterior abdominal wall, providing support and containing blood vessels.

Serous Membrane

A thin membrane that covers internal body cavities and secretes a fluid that keeps the membrane moist; also known as serosa.