Mary Martin, the Owner of Martin Consulting, Started the Business $$\begin{array} { | l | r | l | } \hline \text { Investments } & 40,000 & \\\hline \text { M. Martin, Capital } & & 40,000 \\\hline\end{array}$$

question 131

Multiple Choice

Mary Martin, the owner of Martin Consulting, started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting will make to record the transaction.

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Investments } & 40,000 & \\
• \hline \text { M. Martin, Capital } & & 40,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | l | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { M. Martin, Capital } & & 40,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { M. Martin, Capital } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Investments } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { Increased Equity } & & 40,000 \\
• \hline
• \end{array}\]

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Definitions:

Market Inefficiency

A condition where all available information is not fully incorporated into asset prices, leading to opportunities for higher returns.

Siamese Twin Companies

Companies listed in different countries that share an operational business but trade separately on the stock exchange.

Equity Carve-Outs

A type of corporate restructuring where a company creates a new, independent company by selling or distributing new shares of its existing division or subsidiary.

Closed-End Funds

A type of investment fund with a fixed number of shares that are traded on a stock exchange.