Which of the Following Is Correct When a Corporation Uses

question 34

Multiple Choice

Which of the following is correct when a corporation uses cash to pay for an expense?

• A) Total assets will decrease.
• B) Retained earnings will decrease.
• C) Owners' equity will decrease.
• D) All three of the above statements are correct.

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Definitions:

Initiative

The ability to assess and initiate actions independently, often leading to innovation or problem-solving.

Flat Structure

An organization structure that has wide spans of control and few hierarchical levels.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Levels of Management

The hierarchical layers of authority in an organization, typically ranging from top management to middle management to lower management.