The Issuance of Common Stock Increases a Company's Assets and Stockholders

question 59

True/False

The issuance of common stock increases a company's assets and stockholders' equity.

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Definitions:

Note Receivable

An asset account on a company's balance sheet representing a promise by a debtor to pay a certain amount of money to the company in the future.

Written Promise

A formal pledge, often in the form of a document, affirming that one party agrees to perform or refrain from a specific action.

Short-term Receivables

Financial claims to cash due from customers or clients within one year, typically arising from the sale of goods or services on credit.

Current Assets

Resources anticipated to be transformed into cash, disposed of, or utilized within a year or throughout the usual cycle of business operations.