How Is Cash Invested by Shareholders in Exchange for Shares

question 24

Multiple Choice

How is cash invested by shareholders in exchange for shares initially recorded in the accounting records?

• A)as an increase in Retained Earnings,and an increase in Cash
• B)as an increase in Long-Term Investments,and a decrease in Cash
• C)as an increase in Common Shares,and a decrease in Cash
• D)as an increase in Common Shares,and an increase in Cash

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