Daffy Duct,Inc

question 244

Multiple Choice

Daffy Duct,Inc.issued 10,000 shares of no-par value common stock at $10 per share.Miss Hap,the bookkeeper,recorded the transaction with a $100,000 debit to Cash and $100,000 credit to Common stock.Which of the following statements about this situation is correct?

• A) Total assets will be overstated.
• B) This entry is correct.
• C) Total stockholders' equity will be overstated.
• D) Total liabilities will be understated.

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Definitions:

Food Pellets

Small, compressed units of food often used as a convenient way to feed animals or as part of controlled experiments in behavioral studies.

Avoidance Learning

A learning process where a subject learns to prevent or avoid an unpleasant stimulus by performing a particular behavior.

Negative Reinforcement

A behavioral psychology term referring to the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

High Grades

Marks or scores that are significantly above average, indicating a high level of performance or achievement.