A Company Issues $20 Million in New Stock

question 54

Multiple Choice

A company issues $20 million in new stock.It later uses the cash received to pay off promissory notes.How many different accounts and which account names are affected by these two transactions?

• A)3 accounts involved: contributed capital,cash,and notes payable.
• B)4 accounts involved: contributed capital,cash,investments,and notes payable.
• C)3 accounts involved: cash,contributed capital,and accounts payable.
• D)3 accounts involved: contributed capital,investments,and accounts payable.

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Definitions:

Appearance and Behavior

The outward presentation of oneself combined with actions, both of which are often used to make judgments about character.

Problem Representation

The way in which a problem is conceptualized or framed, which can affect how it is understood and tackled.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks.

Heuristic

A problem-solving strategy that uses a practical method or various shortcuts to produce solutions that may not be optimal but are sufficient for immediate goals.