The Accounting Equation Is Represented by Assets= Liabilities + Stockholders

question 27

Multiple Choice

The accounting equation is represented by Assets= Liabilities + Stockholders' Equity which of the following would cause a change in the stockholders' equity accounts:

• A) Sale of Land for cash and a note receivable for the balance
• B) Collection of an account receivable
• C) Purchased an asset for cash and 10,000 shares of preferred stock
• D) Purchased inventory on account

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Definitions:

Equal Protection Standard

The Equal Protection Standard is a constitutional principle that requires states to treat all individuals within its jurisdiction equally under the law, particularly in terms of the administration of justice and legislative actions.

Rational Basis Test

A standard of review used by courts to evaluate laws and governmental actions to ensure they are reasonably related to a legitimate government interest.

Due Process

A constitutional principle that ensures the government respects all legal rights owed to a person according to the law, including fair treatment through the normal judicial system.

Federal Preemption

A legal doctrine that allows federal law to take precedence over state laws in certain areas, preventing states from enacting conflicting legislation.