Sunrise Company has total assets of $25,000. If $2,000 cash is used to purchase a new computer, the total assets would be
A) $25,000.
B) $23,000.
C) $27,000.
D) $22,000.

Question

Quizplus · Accepted Answer

The total assets remain $25,000 because the purchase of a new computer using cash shifts the composition of assets (from cash to computer equipment) but does not change the total value of the assets.

Sunrise Company Has Total Assets of $25,000