Howard Company Had a Transaction That Caused a $5,000 Increase

question 117

Multiple Choice

Howard Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n)

• A) purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance.
• B) investment of $5,000 cash in the business by the stockholders.
• C) purchase of office equipment for $5,000 cash.
• D) repayment of a $5,000 bank loan.

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Definitions:

Products

Items or services offered for sale by a business, ranging from physical goods to digital offerings and services.

Synchronous Interaction

Real-time communication where individuals exchange information instantly with minimal delay.

Asynchronous Interaction

Communication where responses do not occur in real-time, allowing participants to engage according to their own schedule.

Utilitarian Consumption

involves buying and using products based on their practical functionality and utility, rather than for pleasure or aesthetic reasons.