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.