A Transaction Has Been Recorded in the T-Accounts of Horowitz

question 67

Multiple Choice

A transaction has been recorded in the T-accounts of Horowitz Corporation as follows: Which of the following reflects how this event affects the company's financial statements?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Principal's Affairs

Matters or business activities that are managed or acted upon by an agent on behalf of a principal.

Liable

Legally responsible or obligated, often in the context of paying compensation for harm or damages.

Agency Relationship

A relationship between two parties in which one party (the agent) agrees to represent or act for another party (the principal).

Restatement (Third)

A reference to the third series of the Restatements of the Law, which are authoritative summaries of common law in the United States, aimed at clarifying, modernizing, and improving the law.