If a Company Receives $12,000 from the Stockholders to Establish

question 158

Multiple Choice

If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:

• A)Assets decrease $12,000 and equity decreases $12,000.
• B)Assets increase $12,000 and liabilities decrease $12,000.
• C)Assets increase $12,000 and liabilities increase $12,000.
• D)Liabilities increase $12,000 and equity decreases $12,000.
• E)Assets increase $12,000 and equity increases $12,000.

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Definitions:

Higher Rates of Inflammation

An increased level of the body's immune response, resulting in more swelling, redness, heat, and often pain in tissues affected by injury or disease.

Asthma Development

The process by which individuals acquire asthma, a chronic lung disease that inflames and narrows the airways.

Immune System

The body's defense system comprising organs, tissues, cells, and proteins that work together to fight off pathogens and foreign substances.

Bacteria

Microscopic, single-celled organisms found in diverse environments, some of which can cause diseases while others are beneficial for processes such as fermentation or digestion.