The assets of Star Company are $$120,000$ and the total liabilities are $$10,000.$ The equity is

A$)$ $$10,000$

B$)$ $$120,000$

C$)$ $$130,000$

D$)$ $$110,000$

Which of the following is true of assets?

A$)$ Assets can be recorded at the market value if acquired at a bargain.

B$)$ Assets do not need to provide future benefit to the business.

C$)$ Assets include Cash, Merchandise Inventory, and Accounts Payable.

D$)$ Assets are something of value the business owns or controls.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Mars Electronic Company receives cash from a stockholder, John Tilden, and issues common stock to him

The two accounts involved in this transaction are

A$)$ Cash and Common Stock

B$)$ Common Stock and Accounts Receivable C$)$ Common Stock and

Accounts Payable

D$)$ Accounts Payable and Cash

Adventures Unlimited Company distributes cash dividends. How does this transaction affect the

accounting equation?

A$)$ The assets increase and liabilities decrease.

B$)$ The assets, liabilities, and equity remain the same.

C$)$ The assets decrease and equity decreases.

D$)$ The assets decrease and equity increases.

Jackson Electric Services incurred $$800$ as a repair expense and paid for it in cash. This transaction will

A$)$ decrease the liabilities of the business

C$)$ increase the assets of the business

B$)$ decrease the stockholders' equity

D$)$ increase the liabilities of the business