Use This Information to Answer the Following Question

question 113

Multiple Choice

Use this information to answer the following question. Here is the balance sheet for Abbot Box Company,Inc.:
If the balance in the Cash account were used to buy more equipment,then the total assets would

• A) remain unchanged.
• B) increase by $8,000.
• C) decrease by $8,000.
• D) increase by $21,000.

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Definitions:

Economic Efficiency

A condition where resources are allocated in a way that maximizes the net benefit to society.

Runs Out

A situation where a supply or quantity of something is completely used up or exhausted.

Next Century

A future period of 100 years, used to forecast or plan long-term visions or developments.

Economic Viability

The ability of an entity or activity to sustain itself financially over the long term.