Michael Anderson Is Starting a Computer Programming Business and Has

question 182

Multiple Choice

Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.

• A) increase in assets (Cash) and increase in liabilities (Accounts Payable)
• B) increase in assets (Cash) and increase in owner's equity (Michael Anderson, Capital)
• C) increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable)
• D) increase in assets (Cash) and increase in assets (Accounts Receivable)

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Definitions:

Strict Liability Offense

A legal principle where the defendant is liable for committing an action, regardless of what their intent or mental state was at the time of the act.

Sarbanes-Oxley Act

A United States federal law established to protect investors by improving the accuracy and reliability of corporate disclosures.

Federal Bankruptcy Investigation

A process conducted by a government agency to examine the circumstances and legitimacy of a bankruptcy filing, ensuring compliance with bankruptcy laws.

Document Destruction

The process of eliminating or disposing of documents to prevent confidential information from being leaked or used improperly.