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:

Implicit Memory

This is a type of long-term memory that enables people to perform tasks without conscious awareness of these previous experiences.

Echoic Memory

A subcategory of sensory memory that specifically stores auditory information, allowing sounds to be retained for brief periods following the cessation of auditory stimuli.

Sensory Memory

The shortest-term element of memory, it allows the ability to retain impressions of sensory information after the original stimuli have ended.

Short-Term Memory

The capacity for holding, but not manipulating, a small amount of information in the mind in an active, readily available state for a short period of time.