Question

Increases, Decreases, or no change

If you find $100, your personal assets _________

If The Mission spends $5000 on tequila, company assets ________

If The Mission pays $5000 towards its Sales Tax Payable, Liabilities __________ and Equity _________

If Apple invests $5 million in R&D, assets will ________ and liabilities will ________

If The Mission spends $25k on new equipment, assets will ________ and liabilities will ________

If The Mission borrows $25k for new equipment, financial leverage will ________ and equity will ________

If The Mission pays loan off of $25k for new equipment, financial leverage will ________ and equity will ________

As the amount of risk in an investment decreases, the antcipated amount of return ________

As the price per share increases, market cap or the valuation of a firm ________

As a firm repurchases its own outstanding stock, price per share ________

As a firm increases revenue, price per share ________

If a firm's market cap or valuation increases, either price per share ________ or shares outstanding _________

As the amount of debt increases, the amount of leverage ________

As the amount of equity increases, the amount of liabilities ________

Answer 1

1	If you find $100, your personal assets Increase
2	If The Mission spends $5000 on tequila, company assets No change.
3	If The Mission pays $5000 towards its Sales Tax Payable, Liabilities Decrease and Equity No change.
4	If Apple invests $5 million in R&D, assets will Increase and liabilities will No change.
5	If The Mission spends $25k on new equipment, assets will Increase and liabilities will No change (if payment made in cash otherwise decrease if on account)
6	If The Mission borrows $25k for new equipment, financial leverage will Increase and equity will No change.
7	If The Mission pays loan off of $25k for new equipment, financial leverage will Decrease and equity will No change.
8	As the amount of risk in an investment decreases, the antcipated amount of return Decrease.
9	As the price per share increases, market cap or the valuation of a firm Increase.
10	As a firm repurchases its own outstanding stock, price per share No change.
11	As a firm increases revenue, price per share Increase.
12	If a firm's market cap or valuation increases, either price per share Increase or shares outstanding Increase
13	As the amount of debt increases, the amount of leverage Increase
14	As the amount of equity increases, the amount of liabilities No change.