Star Homes Company Just Recorded a Transaction in Its Books

question 107

Multiple Choice

Star Homes Company just recorded a transaction in its books.If this transaction increased the total liabilities by $10,000,then ________.

• A)assets must increase,or equity must decrease by $10,000
• B)either assets or equity must decrease by $10,000
• C)both assets and equity must each decrease by $5,000
• D)assets must decrease by $10,000

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories, influencing global economy, politics, and the standard of living.

British Pound

The official currency of the United Kingdom, also known historically as sterling, which is one of the world's oldest currencies still in use.

Panama Canal

A man-made waterway that connects the Atlantic and Pacific Oceans across the Isthmus of Panama, significantly reducing the maritime journey time between the east and west coasts of the Americas.

Military Intervention

The act of a nation deploying its armed forces into another sovereign country for the purpose of influencing its affairs or securing its interests.