Comstock Company Provided Consulting Services and Billed the Client $2,500

question 140

Multiple Choice

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

• A) assets remained unchanged.
• B) assets increased by $2,500.
• C) equity increased by $2,500
• D) Both assets and equity increased by $2,500.

Grasp the concept of startup costs and financial planning for new businesses.

Understand the process of turning hobbies into viable businesses.

Appreciate the importance of research and intuition in identifying business opportunities.

Recognize the significance of unforeseen opportunities in business.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that has precedence over common stock dividends.

Capital Gains Yield

The price appreciation component of a stock's total return, calculated as the increase in the stock price divided by the initial price of the stock.

Next Dividend

Refers to the upcoming dividend payment that a company plans to distribute to its shareholders.

TOYS4U Stock

A hypothetical or specific example of stock representing equity ownership in the company TOYS4U, potentially subject to market fluctuations.