Which of the Following Transactions Increases Both Assets and Stockholders

question 128

Multiple Choice

Which of the following transactions increases both assets and stockholders' equity?

• A) Payment received from a credit customer
• B) Received a bank loan
• C) Rendered a service,payment not yet received
• D) Declared and paid a dividend

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Definitions:

Equipment

Tangible, long-term assets used in the operation of a business to produce goods or provide services, usually subject to depreciation over their useful lives.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary, day-to-day operations of a business, such as selling products or providing services.

Prepaid Expenses

Assets on the balance sheet representing services or goods paid for upfront but not yet consumed.