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:

Complementary Products

Products that are used together or enhance the value or experience of each other, leading to increased demand when sold together.

Marked Down

Refers to products that have their prices reduced, usually to encourage quick sales or clear out inventory.

Demand Increase

A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price over a certain period of time.

Maintained Markup

The difference between the retail price and the cost of an item to the retailer, maintained as a percentage of the retail price.