Author Question: Mercy, Inc. purchased equipment for 5,000 cash. The effect of this transaction on the accounting ... (Read 294 times)

kamilo84 · **on:** Jul 5, 2018

Mercy, Inc. purchased equipment for 5,000 cash. The effect of this transaction on the accounting equation is:

A) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
(5,000) cash No effect No effect (5,000) equipment expense

B) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
5,000 cash
(5,000) equipment No effect No effect No effect

C) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
5,000 equipment
(5,000) cash No effect No effect No effect

D) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
5,000 equipment No effect Increase 5,000 cash

Question 2

A(n) ____ is a computer abuse technique where unauthorized instructions are inserted into a program to systematically steal very small amounts, usually by rounding to the nearest cent in financial transactions.
a. worm
b. salami slicing
c. logic bomb
d. Trojan horse