Strum Hardware has total assets of $50,000.What are the total assets if new equipment is purchased for $10,000 cash?
A)$45,000
B)$50,000
C)$55,000
D)$60,000

Question

Quizplus · Accepted Answer

The purchase of new equipment for $10,000 cash does not change the total assets, as cash (an asset) is reduced by $10,000 and equipment (another asset) is increased by $10,000, keeping total assets at $50,000.

Strum Hardware Has Total Assets of $50,000