Which of the Following Business Transactions Would Increase the Equity

question 195

Multiple Choice

Which of the following business transactions would increase the equity of ABC Limited?

• A) ABC received a $1,200 cash payment on account from a customer.
• B) ABC Limited's owner withdrew $900 cash to cover personal living expenses.
• C) ABC purchased a new machine for $45,000 on account.
• D) ABC billed a customer $14,800 for consulting services provided during the month.
• E) ABC purchased a building for $100,000 on account.

---

Definitions:

Unconscious Mental Dynamics

The underlying psychological forces, unknown to the conscious mind, that influence individual behaviors and thoughts.

Repression

Repression is a psychological defense mechanism wherein individuals unconsciously push distressing thoughts and feelings out of conscious awareness.

Right-Hemisphere Activity

Neural processes occurring in the right side of the brain, often associated with creativity, intuition, spatial ability, and the processing of visual and auditory information.

Psychoanalytic Theory

A theory developed by Sigmund Freud that focuses on unconscious processes as the driving forces behind human behavior, emphasizing childhood experiences and sexual drives.