Your firm decides to increase equity by $1,000,000. Which of the follo

Your firm decides to increase equity by $1,000,000. Which of the following sets of transactions could NOT be appropriate ledger entries?

A) Increase equity by $1,000,000 and increase long-term assets by $1,000,000
B) Increase equity by $1,000,000, decrease long-term debt by $500,000, and increase inventory by $500,000
C) Increase equity by $1,000,000 and increase inventory by $1,000,000
D) All of the above transactions would be appropriate.

ANSWER

D