For the Following Transaction,identify the Type of Change That Would

question 71

Multiple Choice

For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
-
The company received cash dividends on investments.

• A) A liability increased and another liability decreased.
• B) An asset decreased and a liability decreased.
• C) An asset increased and revenue increased.
• D) An asset increased and equity increased.

---

Definitions:

Marginal Revenue (MR)

The additional financial gain a firm secures by selling one more unit of its product or service.

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and complete information, leading to price taking behavior.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, leading to market stability.

Market Demand

The combined volume of a good or service that consumers in a marketplace are ready and capable of buying at assorted prices.