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
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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.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has significant market power to influence prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Marginal Revenue

The additional income generated from selling one more unit of a good or service. It is a vital concept in determining the optimal level of output for a company.