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

Question

Quizplus · Accepted Answer

The purchase of a new building for $5,000 cash does not change the total assets, as cash (an asset) decreases by $5,000 and the building (another asset) increases by $5,000, keeping total assets at $60,000.

Strum Hardware Has Total Assets of $60,000