Celery Company Has Assets of $150,000, Liabilities of $90,000, and Equity

question 150

Multiple Choice

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

• A) Assets, $5,000 increase, equity, $5,000 increase.
• B) Assets, $5,000 increase, equity, $5,000 decrease.
• C) Liabilities, $5,000 increase, equity, $5,000 decrease.
• D) Assets, $5,000 decrease, equity, $5,000 decrease.
• E) Assets, no effect; liabilities, no effect

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Definitions:

Specialized Cells

Cells that have developed unique characteristics and functions to perform specific roles within an organism.

Consumers

Organisms that obtain energy by feeding on other organisms or organic matter because they cannot produce their own food.

Multicellular Eukaryotes

Organisms composed of multiple cells with a distinct nucleus and organelles, including plants, animals, and fungi.

Arthropods

A vast phylum that includes insects, arachnids, myriapods, and crustaceans, characterized by their exoskeleton, segmented bodies, and jointed appendages.