Computer Corporation is starting its computer programming business and has sold stock of $15,000. Identify how the accounting equation will be affected.
A) increase in assets (Cash) and increase in liabilities (Accounts Payable)
B) increase in assets (Cash) and increase in stockholders' equity (Common Stock)
C) increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable)
D) increase in assets (Cash) and increase in assets (Accounts Receivable)

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Assets (Cash) increase by $15,000
Stockholders' Equity (Common Stock) increases by $15,000

Computer Corporation Is Starting Its Computer Programming Business and Has