If Shares of Preferred Stock Are Sold at Par Value

question 78

Multiple Choice

If shares of preferred stock are sold at par value for cash, the transaction would be entered by

• A) debiting Cash and crediting Preferred Stock.
• B) debiting Preferred Stock and crediting Cash.
• C) debiting Preferred Stock Subscriptions Receivable and crediting Preferred Stock.
• D) debiting Preferred Stock Subscribed and crediting Preferred Stock.

---

Definitions:

Prioritizing Problems

The process of arranging issues or challenges in order of importance or urgency to effectively manage and address them.

Critical Thinking

is the process of actively analyzing, assessing, and synthesizing information to form a reasoned judgement.

Skeptical Peer Review

The process of critically evaluating the validity and quality of a research work by experts in the same field who are not part of the research team.

Wishful Thinking

The formation of beliefs or making decisions based on what is pleasing to imagine rather than on evidence, rationality, or reality.