Asked by
Christina Wright
on Dec 17, 2024
Verified
Strum Hardware has total Assets of $60,000. What are the total Assets if new building is purchased for $5,000 cash?
A) $70,000
B) $65,000
C) $55,000
D) $60,000
Total Assets
The sum of all assets owned by a business, including both current and non-current assets.
New Building
This term refers to the accounting classification of a recently constructed building as a fixed asset, which will be subject to depreciation over its useful life.
Cash
A form of currency that can be used to exchange goods, services, or to settle debts.
- Assess transactions to gauge their impact on the accounting equation.
- Understand the concept of purchasing assets and its impact on the accounting equation.
Verified Answer
BF
Learning Objectives
- Assess transactions to gauge their impact on the accounting equation.
- Understand the concept of purchasing assets and its impact on the accounting equation.