For the Following Transaction,identify the Type of Change That Would

question 39

Multiple Choice

For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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A new CEO was appointed to commence in 3 months' time on a salary of $400 000 per annum.

• A) A liability increased and another liability decreased.
• B) An asset decreased and a liability decreased.
• C) An asset increased and revenue increased.
• D) This had no effect on the accounting equation.

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Definitions:

Government Owned

Entities or assets that are owned, controlled, or operated by the government or a public authority.

Peak Efficiency

Peak efficiency is the maximum operational effectiveness where a process or system operates at its highest level of productivity with minimal waste.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in the quantity of output produced.

Barriers to Market Entry

Obstacles that make it difficult for a new firm to enter an industry, which might include high start-up costs, strict regulations, or established brand loyalty.