Your firm decides to increase equity by $1,000,000. Which of the following sets of transactions could...

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Finance

Your firm decides to increase equity by $1,000,000. Which of thefollowing sets of transactions could NOT be appropriate ledgerentries?
Increase equity by $1,000,000 and increase long-term assets by$1,000,000
Increase equity by $1,000,000, decrease long-term debt by$500,000, and increase inventory by $500,000
Increase equity by $1,000,000 and increase inventory by$1,000,000
All of these transactions would be appropriate.

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Answer All of these transactions would be appropriate Explanation The double entry is correct for all the above transactions as they would satisfy the accounting equation See Answer

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Your firm decides to increase equity by $1,000,000. Which of thefollowing sets of transactions could NOT be appropriate ledgerentries?Increase equity by $1,000,000 and increase long-term assets by$1,000,000Increase equity by $1,000,000, decrease long-term debt by$500,000, and increase inventory by $500,000Increase equity by $1,000,000 and increase inventory by$1,000,000All of these transactions would be appropriate.