Harvest Moon Company has total assets of $20,000.If $2,000 cash is used to purchase a new computer,the total assets would be:
A)$20,000.
B)$18,000.
C)$22,000.
D)$2,000.

Name: Harvest Moon Company has total assets of $20,000.If $2,000 cash is used to purchase a new computer,the total assets would be: A)$20,000. B)$18,000. C)$22,000. D)$2,000.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The total assets remain $20,000 because using cash to purchase a computer is an exchange of one asset for another, not an increase or decrease in total assets.

Harvest Moon Company Has Total Assets of $20,000