Which of the Following Is Correct If a Company Purchases

question 40

Multiple Choice

Which of the following is correct if a company purchases equipment for $70,000 cash?

• A)Total assets will increase by $70,000.
• B)Total assets will decrease by $70,000.
• C)Total assets will remain the same.
• D)Total owners' equity will decrease.

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Definitions:

Regio-

Refers to the specific region or orientation of molecules or molecular groups within a chemical compound.

Diazomethane

A highly reactive, yellow, toxic gas with the formula CH2N2, used in organic synthesis to introduce a methyl group.

Zwitterionic

A chemical compound that is electrically neutral overall but contains positively and negatively charged sites at different atoms within the molecule.

Carbene

A highly reactive molecule featuring a carbon atom with two nonbonded electrons and is bonded to only two other atoms.