Carl and Stefanie Each Invest $15,000 in a Business and Are

Multiple Choice

Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests.For this transaction, identify the effect on the accounting equation.

A) Assets increase and liabilities increase.
B) Assets increase and stockholders' equity increases.
C) Liabilities increase and stockholders' equity decreases.
D) Liabilities decrease and assets decrease.