Apatha Company Has Assets of $600,000,liabilities of $250,000,and Equity of $350,000.It

question 189

Multiple Choice

Apatha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.The effects of this transaction include:

• A)Assets increase by $75,000 and expenses increase by $75,000.
• B)Assets increase by $75,000 and expenses decrease by $75,000.
• C)Liabilities increase by $75,000 and expenses decrease by $75,000.
• D)Assets decrease by $75,000 and expenses decrease by $75,000.
• E)Assets increase by $75,000 and liabilities increase by $75,000.

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Definitions:

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or solutions to existing problems.

Technological Change

The development and application of new ideas, inventions, and innovations in processes and products.

Profit Motive

The driving force behind business operations and entrepreneurship, characterized by the desire to earn financial gain from activities.

Digital Camera

A device that captures photographs in digital format, allowing for storage, display, and sharing on electronic platforms.