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Your Firm Decides to Increase Equity by $1,000,000

Question 13

Multiple Choice

Your firm decides to increase equity by $1,000,000.Which of the following sets of transactions could NOT be appropriate ledger entries?


A) Increase equity by $1,000,000 and increase long-term assets by $1,000,000
B) Increase equity by $1,000,000,decrease long-term debt by $500,000,and increase inventory by $500,000
C) Increase equity by $1,000,000 and increase inventory by $1,000,000
D) All of the above transactions would be appropriate.

Correct Answer:

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