The Accounting Equation for Long Company Shows an Increase in Its

question 251

Multiple Choice

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect?

• A)Cash was received from providing services to a customer.
• B)Cash was received in exchange for common stock.
• C)Equipment was purchased on credit.
• D)Supplies were purchased for cash.
• E)Advertising expense for the month was paid in cash.

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Definitions:

Dental Coverage

A type of health insurance that covers a portion of the costs associated with dental care, including routine checkups, cleanings, x-rays, and certain procedures.

Flexible Benefit Plans

Benefits programs that allow employees to choose from a range of options to create a package that best suits their needs and lifestyle.

Benefit Costs

The expenses borne by employers for the non-wage compensations provided to employees, such as health insurance, pensions, and paid leave.

Entitlement Approach

A method in economic policy or welfare economics where benefits are distributed based on set criteria, often used to ensure that basic needs are met.