If a Company Issues Common Stock for $40,000 and Uses

question 189

Multiple Choice

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

• A)assets will be increased by $10,000.
• B)equity will be reduced by $40,000.
• C)assets will be increased by $40,000.
• D)assets will be unchanged.

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Definitions:

Quick Reasoning

The ability to think and form judgments rapidly and efficiently.

Correlational Research

A type of non-experimental research method used to measure the extent to which two variables are related, without implying causation.

High IQs

Refers to individuals possessing significantly above-average Intelligence Quotients, indicating superior intellectual abilities relative to the general population.

Environmental Factors

External elements that can influence development, health, and behavior, such as pollution, social interactions, and education.