Match Each Transaction with Its Effect on the Accounting Equation

question 104

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Payment for common stock by stockholder

• A)Increase assets, increase liabilities
• B)Increase liabilities, decrease stockholders' equity
• C)Increase assets, increase stockholders' equity
• D)No effect
• E)Decrease assets, decrease liabilities
• F)Decrease assets, decrease stockholders' equity

---

Definitions:

Overhead Costs

General business expenses not directly attributable to creating products or services.

Departments

Distinct areas within an organization, each focusing on a specific aspect of the business operation, such as finance, marketing, or human resources.

Products

Goods or services offered by a business to the market.

Product Costs

The costs incurred by a company to manufacture or acquire a product which include materials, labor, and overhead.