An accounting system is referred to as a double-entry system because:

A.both what is received and what is given in exchange are recorded. B.transactions are recorded in both the journal and ledger. C.all entries are checked twice to ensure accuracy. D.transactions are recorded twice by separate individuals to ensure accuracy.

Every transaction:

A.increases one account and decreases another account. B.has at least two effects on the basic accounting equation. C.affects only balance sheet accounts or only income statement accounts. D.is analyzed from the standpoint of the business owners.

Park & Company was recently formed with a $5,000 investment in the company by stockholders in exchange for common stock. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:

A.$7,000. B.$9,000. C.$10,000. D.$11,000.