If a Company Receives $12,000 from a Stockholder,the Effect on the Accounting

question 88

Multiple Choice

If a company receives $12,000 from a stockholder,the effect on the accounting equation would be:

• A)Assets decrease $12,000 and equity decreases $12,000.
• B)Assets increase $12,000 and liabilities decrease $12,000.
• C)Assets increase $12,000 and liabilities increase $12,000.
• D)Liabilities increase $12,000 and equity decreases $12,000.
• E)Assets increase $12,000 and equity increases $12,000.

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Definitions:

Acetate

A salt or ester of acetic acid, often used as a solvent or in making synthetic fibers or plastics.

Ketone Bodies

Metabolic products produced during fatty acid metabolism, used by some tissues as an energy source when glucose is not available.

Beta Oxidation

A metabolic process in which fatty acids are broken down in the mitochondria to generate acetyl-CoA, a substrate for the citric acid cycle.

Acetyl CoA

A critical molecule involved in metabolism, linking the breakdown of carbohydrates, fats, and proteins to energy production.