Which of the Following Is Possible for a Particular Business

question 90

Multiple Choice

Which of the following is possible for a particular business transaction?

• A)Increase assets;Decrease liabilities
• B)Decrease assets;Increase assets
• C)Decrease assets;Increase stockholders' equity
• D)Decrease liabilities;Increase expenses

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Definitions:

Capital Assets

Long-term assets acquired for business use and not expected to be converted to cash in the coming year, typically including buildings, machinery, and equipment.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Subsidiary

An entity that is controlled by another entity (known as the parent company).

Shares

units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders as dividends.