If a Transaction Causes Total Assets of the Company to Increase

question 73

True/False

If a transaction causes total assets of the company to increase by $2,000,then liabilities plus stockholders' equity also increases by $2,000.

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Definitions:

Charge Account

A type of credit account that requires the full balance to be paid at the end of each billing cycle.

Stop Payment Order

a request made by an account holder to their bank to prevent a check or preauthorized payment from being processed.

UCC

The Uniform Commercial Code is an extensive series of statutes that regulate all aspects of commercial dealings in the United States.

Bank Deposits and Collections

This term refers to the processes involved in placing funds into a bank account and the subsequent management and collection of those funds.