Stackables, Inc. paid 8,000 cash for inventory. The effect of this transaction on the accounting equation is:
A) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect No effect Increase
B) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Decrease No effect No effect Decrease
C) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
No effect No effect No effect No effect
D) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect Increase No effect
Question 2
As a result of an inadequate design, a production process yields an abnormally high amount of raw material scrapped. Which control goal is being violated?
a. ensure effectiveness of operations
b. ensure efficient employment of resources
c. ensure security of resources
d. ensure input accuracy
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After 159 days,she paid a maturity value of $11,626, which included interest of $814.
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