Issac and Karl are partners. Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000. Bill invested $15,000 to acquire an ownership interest of 30%. How does this transaction affect the balance sheet items?

A) Asset increases and the equity remains unchanged.
B) Assets increase and the equity decreases.
C) Both assets and equity increase.
D) Assets increase, liabilities decrease, and the equity remain unchanged.


C) Both assets and equity increase.

Business

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Answer the following statement true (T) or false (F)

Business

Answer the following statements true (T) or false (F)

1. When a company collects the face value of a bond investment at maturity, total assets increase. 2. If a held-to-maturity debt security is purchased at a discount, the discount must be amortized when the interest revenue is earned. 3. When a company uses excess cash to invest in equity securities with less than 20% ownership, its total equity will increase. 4. Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value.

Business

Discuss the role of synergy within a team and how synergy can lead to overall higher performance and greater accomplishments as compared to an individual effort. Provide an example that shows how synergy can be applied to explain why this may lead to greater performance.

What will be an ideal response?

Business

An advertisement is generally considered an offer

Indicate whether the statement is true or false

Business