A Company's Total Assets Increased During the Period While Its

question 4

Multiple Choice

A company's total assets increased during the period while its liabilities and common stock were unchanged.No dividends were declared or paid during the period.Which of the following would explain this situation?

• A)Revenues were greater than expenses during the period.
• B)Retained earnings were less than net income during the period.
• C)No dividends were paid during the period.
• D)The company must have purchased assets with cash during the period.

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Definitions:

Propanoic Acid

A colorless, oily liquid with a pungent odor, used in the manufacture of various chemicals, including as a preservative.

Osmosis

The movement of water molecules through a semi-permeable membrane from a region of low solute concentration to a region of high solute concentration to equalize the concentrations on both sides of the membrane.

Semipermeable Membrane

A type of membrane that allows certain molecules or ions to pass through it by diffusion and occasionally specialized "facilitated diffusion," while blocking others.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration, driven by thermal energy.