AMB Company's Tabular Analysis at the Beginning of October Consisted

question 115

Multiple Choice

AMB Company's tabular analysis at the beginning of October consisted of the following balances: During October the company issued additional shares of stock for proceeds of $2000.After recording this transaction in the tabular analysis the company would report:

• A)Assets $12000 = Liabilities $3000 + Stockholders' Equity $9000
• B)Assets $9500 = Liabilities $3000 + Stockholders' Equity $6500
• C)Assets $10000 = Liabilities $3000 + Stockholders' Equity $9000
• D)Assets $8000 = Liabilities $3000 + Stockholders' Equity $5000

---

Definitions:

Market Equilibrium

The point at which the quantity of goods supplied equals the quantity demanded at a particular price.

Emergent Equilibria

The spontaneous attainment of stability within a complex system where individual components interact and adjust to changing conditions without central control.

Invisible Hand

A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied.