Which of the Following Transactions Increases Both Assets and Stockholders

question 128

Multiple Choice

Which of the following transactions increases both assets and stockholders' equity?

• A) Payment received from a credit customer
• B) Received a bank loan
• C) Rendered a service,payment not yet received
• D) Declared and paid a dividend

Understand the classification of accounts (permanent vs. temporary) and the impact on financial statements.

Calculate financial results and changes in financial position using the accounting equation and financial data.

Identify errors that can be detected by a trial balance and understand the limitations of a trial balance in error detection.

Understand the effects of transactions on unearned revenue and prepaid expenses and their presentation in financial statements.

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Definitions:

Black Units

Military units composed entirely or predominantly of African American soldiers, which have existed within various armed forces around the world.

Indian Wars

A series of conflicts between European settlers/colonists and Native American tribes over land rights and sovereignty, spanning several centuries in North America.

Treaty of Paris

The 1783 agreement that ended the Revolutionary War, recognizing American independence from Britain. Additionally, a treaty by the same name ended the Spanish-American War in 1898.

Puerto Rico

A Caribbean island and unincorporated U.S. territory with a unique culture that blends Indigenous, African, and Spanish influences.