The Purchase of an Asset (Like Equipment) on Account Will

question 10

Multiple Choice

The purchase of an asset (like Equipment) on account will

• A) increase total liabilities and decrease total assets.
• B) have no effect on total assets or total liabilities.
• C) increase total assets and increase total liabilities.
• D) increase total assets and increase owner's equity.
• E) increase total assets and decrease owner's equity.

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Definitions:

Provision

Provision is the act of supplying or making available goods, services, or funds needed for a specific purpose, or the items supplied themselves.

Governing Boards

Bodies that oversee the strategic direction, accountability, and major policies of an organization, often comprising members elected or appointed to serve.

Ultimate Responsibility

The highest level of accountability, often resting with top managers or leaders, for the outcomes and decisions of an organization or project.

Organization's Mission

A statement that outlines an organization's purpose, its reasons for existing, and the unique value it aims to provide.