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:

Civil Commitments

Legal procedures that allow individuals with severe mental illnesses to be mandated into treatment or care without their consent, based on the potential harm they might pose to themselves or others.

Institutionalized

The process of establishing something as a norm or standard in an organization or culture, or becoming adapted to life in an institution.

1960s

A decade from 1960 to 1969 characterized by significant cultural, social, and political changes worldwide.

African Americans

A racial or ethnic group in the United States with ancestry primarily from sub-Saharan Africa.