Star Homes Inc

question 54

Multiple Choice

Star Homes Inc. just recorded a transaction in its books of accounts. If this transaction increased the total liabilities by $7,000:

• A)assets must increase, or equity must decrease by $7,000.
• B)assets or equity must decrease by $7,000.
• C)both assets and equity must each decrease by $3,500.
• D)assets must decrease by $7,000.

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Definitions:

Unions

Organizations formed by workers to advocate for their rights, benefits, and interests within the workplace.

Organize

To arrange or structure people, items, or activities in a systematic way for efficiency or clarity.

Holiday Act

Legislation that specifies public holidays and the rights of employees regarding these days off.

Paid Vacation Time

Employment benefits allowing employees a certain period of paid leave from work for rest, recreation, or personal matters.