A Transaction Has Been Recorded in the T-Accounts of Horowitz $\begin{array}{cc}\text {Cash }\\\hline\begin{array}{ll|l}&25,000& \\\end{array}\end{array}$

question 19

Multiple Choice

A transaction has been recorded in the T-accounts of Horowitz Corporation as follows:
$\begin{array}{cc}\text {Cash }\\\hline\begin{array}{ll|l}&25,000& \\\end{array}\end{array}$
$\begin{array}{cc}\text {Common Stock }\\\hline\begin{array}{ll|l}&&25,000 \\\end{array}\end{array}$
Which of the following reflects how this event affects the company's financial statements?
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | } \hline&&&&&\text { Stk. }&&&&&&\text { Stmt of }\\ &\text { Asset }&=&\text { Liab. }&+&\text { Equity }&\text { Rev. }&-&\text { Exp. }&=&\text { Net Inc. }&\text { Cash Flows }\\\hline A&+&=&+&+&NA&NA&-&NA&=&NA&+FA\\\hline B&+&=&NA&+&+&NA&-&NA&=&NA&+FA\\\hline C&-&=&NA&+&-&-&-&NA&=&-&+OA\\\hline D&-&=&-&+&NA&NA&-&+&=&-&-IA\\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

---

Definitions:

Rationalization

Involves the process of replacing traditional and emotional thought with reason and practicality, often in the context of bureaucracies or societies becoming increasingly governed by logic and efficiency.

Separatism

The advocacy or practice of separation of a certain group of people from a larger body on the basis of ethnicity, religion, or gender.

Born In

Generally refers to the place or circumstances of one's birth, highlighting the origin.

Percent

A mathematical term representing a part of a whole divided by 100, used to describe proportions, ratios, or comparisons.