Which One of the Following Changes Describes the Receipt of $2,000

question 100

Multiple Choice

Which one of the following changes describes the receipt of $2,000 from the issuance of common stock?

• A) Assets and shareholders' equity increase by $2,000.
• B) Assets and shareholders' equity decrease by $2,000.
• C) Assets and liabilities increase by $2,000.
• D) Assets increase and shareholders' equity decreases by $2,000.

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Definitions:

Attribute Preference Rule

A decision rule used by consumers, focusing on a single characteristic of a product to make a choice, often when other decision criteria are overwhelming or unclear.

Disjunctive Rule

A decision-making rule applied when choosing among alternatives, focusing on selecting the option that has at least one attribute exceeding a threshold level.

Non-compensatory Decision-making Rule

A decision rule where if an option does not meet at least one important criterion, it is dropped from consideration, regardless of its merits on other criteria.

George Kingsley Zipf

was an American linguist and philologist who is best known for Zipf's law, which suggests that in any given language, the frequency of any word is inversely proportional to its rank in the frequency table.