Contessa Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:
A. Both total assets and equity are unchanged and liabilities increase.
B. Total assets increase and equity decreases.
C. Both total assets and total liabilities decrease.
D. Total assets decrease and equity increases.
E. Total assets, total liabilities, and total equity are unchanged.
Answer: E
You might also like to view...
Which of the following motions asserts that there are no factual disputes to be decided by the jury, and that the judge can apply the proper law to the undisputed facts and decide the case without a jury?
A) motion for summary judgment B) motion for judgment on the pleadings C) motion for a directed verdict D) motion for judgment notwithstanding the verdict
Which of the following is true about the required notice for shareholders' meetings?
A) The notice must be written and is required for both regular and special meetings. B) The notice must be written, but is required only for special meetings. C) The notice can be oral or written, but is required only for special meetings. D) The notice can be oral or written and is required for both regular and special meetings. E) The notice must be written, but is required only when unusual items will be on the agenda of the meeting.
Burger King and Häagen-Dazs ice cream once attempted to use co-branding. What is a likely reason that it failed?
What will be an ideal response?
Olivia owns convertible securities in a company that manufactures electrical appliances. If the conversion ratio for the convertible securities is 50, it means that:
A. Olivia can resell the 50% of the convertible securities that she owns to other preferred stockholders. B. Olivia can exchange half of the convertible securities that she already owns with shares of common stock. C. Olivia can exchange each convertible security that she owns for 50 shares of common stock. D. Olivia can sell each convertible security that she owns for $50.