Apurchase of an asset for immediate consumption that will not be paid for until next month would cause liabilities to increase and stockholders’ equity to decrease this month.
o true o false

Answers

Ican’t you with this question

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

#plato4lyfe

False

Explanation:

When an asset is purchased for immediate consumption and it will be paid for next month the company will have an accounts payable. So in this case the purchase of the asset would increase the assets of the company and increase accounts payable a liability by the same amount. Stock holders equity will remain unchanged by this transaction therefore this statement is false, as this transaction will only affect assets and liabilities.

False

Explanation:

When an asset is purchased for immediate consumption and it will be paid for next month the company will have an accounts payable. So in this case the purchase of the asset would increase the assets of the company and increase accounts payable a liability by the same amount. Stock holders equity will remain unchanged by this transaction therefore this statement is false, as this transaction will only affect assets and liabilities.



Do you know the answer?

Other questions on the subject: Business

Business, 21.06.2019, Noahl2001
12,000,000; $6,000,000Explanation:the amount of economic investment from BBQ’s actionsBBQ builds 10 new restaurants at $1 million per restaurant= $1 million × 10= $10 millionequipm...Read More
2 more answers
Business, 21.06.2019, Dianar4308
The correct answer is c. do to satisfy customersExplanation:Creating a customer-centered culture is mandatory for any business. Customer care has never been more important. Today,...Read More
2 more answers
Business, 22.06.2019, perlacruz0505
Bonjour1- "ain"  ► "un"-2-"am" ► "en"-3- Comment allez-vous ?   Ça va bien. Et vous?-4- the object you would find in a backpack    un livre-5- L'élève est d'où ?   Elle est de Nan...Read More
3 more answers