During Year 2,Millstone Company Provided $6,500 of Services for Cash,paid

question 8

Multiple Choice

During Year 2,Millstone Company provided $6,500 of services for cash,paid cash dividends of $1,000 to owners,and paid $4,000 cash for expenses.Liabilities were unchanged.Which of the following statements accurately describes the effect of these events on the elements of the company's financial statements?

• A)Assets increased by $6,500.
• B)Assets increased by $1,500.
• C)Equity increased by $2,500.
• D)Assets increased by $5,500.

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Definitions:

Ethical Decision-Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Sexual Harassment

Unwanted or inappropriate comments, advances, or any form of conduct of a sexual nature that creates an uncomfortable or hostile environment for the recipient.

Internal Grievance Procedures

The formal process within an organization for addressing complaints or disputes from its employees.

Quid Pro Quo

A Latin term for a mutual agreement where something is given in exchange for something else, often used in legal and contractual contexts.