On April 30, Victoria Secreto sold 1,000 shares of her Limited, Inc.'s common stock to Claire Jewels for $8,000. The stock cost Victoria $5,000. Limited, Inc.'s accounting equation ______.
a. is not affected b/c the corp. is separate from its owners
b. will show a decrease in total assets and total shareholders' equity
c. will show an increase in total assets and total shareholders' equity
d. will show an increase in Retained Earnings
e. is not affected b/c of the cost principle
Ans: a. is not affected b/c the corp. is separate from its owners
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