The amounts of individual assets that make up total assets, represented by accounts receivable, inventories, equipment, and other assets, reflect a firm's financing decisions, each measured at the balance sheet date.

Question

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The amounts of individual assets reflect a firm's investing decisions, not financing decisions. Financing decisions are related to how a firm raises capital, through debt or equity, and are reflected in the liabilities and equity sections of the balance sheet.

The Amounts of Individual Assets That Make Up Total Assets