Carl and Stefanie Each Invest $15,000 in a Business and Are

question 82

Multiple Choice

Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests.For this transaction, identify the effect on the accounting equation.

• A)Assets increase and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Liabilities increase and stockholders' equity decreases.
• D)Liabilities decrease and assets decrease.

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Definitions:

Alveoli

Tiny air sacs within the lungs where gas exchange between the air and blood occurs.

Dalton's Law

The principle that the total pressure exerted by a mixture of gases is equal to the sum of the pressures that each would exert if it were present alone.

Partial Pressures

The pressure that a single gas in a mixture of gases would exert if it alone occupied the entire volume of the mixture.

Total Pressure

The combined pressure exerted by a mixture of gases in a container, equal to the sum of the pressures that each gas would exert if it were alone.