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:

IFRS

IFRS stands for International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at making global financial statements more comparable, transparent, and reliable.

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at their current market prices.

Trading Securities

Financial assets that a firm holds for the purpose of selling them in the short term to profit from price changes.

Amortized Cost

The amount at which a financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization.