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:

Marriage

A legally or socially recognized union between two people, establishing rights and obligations between them, their children, and their families.

Family Therapists

Professionals who provide psychotherapy focused on familial relationships and dynamics, aiming to improve communication and resolve conflicts within families.

Biomedical Approach

An approach to health and illness focusing on biological factors, including genetics, physiology, and pathology, often emphasizing medication and surgery as treatments.

Managed Care

Health care system in which all necessary services for an individual patient are supposed to be coordinated by a primary care provider; the goals are to coordinate services for an existing medical problem and to prevent future medical problems.