If total liabilities increase by $5,000 then
A. assets decrease by $5,000.
B. stockholders' equity increase by $5,000.
C. assets increase by $5,000, or stockholders' equity decrease by $5,000.
D. assets and stockholders' equity each increase by $2,500.
Answer: C. assets increase by $5,000, or stockholders' equity decrease by $5,000.
You might also like to view...
Carne Manufacturing declared a 10% stock dividend when it had 200,000 shares of $5 par value common stock outstanding. The market price per common share was $15 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to:
a. Stock Dividends of $300,000. b. Paid-in Capital in Excess of Par for $200,000. c. Common Stock for $300,000. d. Stock Dividends for $100,000.
Policies serve as guidelines to action
a. that still allow for some interpretation. b. that must be followed quite strictly. c. for workers below the top-management level. d. mostly in the areas of finance and human resources.