A Company Issues $20 Million in New Stock

question 102

Multiple Choice

A company issues $20 million in new stock. The company later uses this money to acquire a building. How many accounts will be affected by these transactions and which particular account names are most likely to be used to record the effects of these transactions?

• A) 3 accounts affected: Contributed Capital, Cash, and Building.
• B) 4 accounts affected: Contributed Capital, Cash, Liabilities, and Building.
• C) 3 accounts affected: Cash, Property, Plant and Equipment, and Contributed Capital.
• D) 3 accounts affected: Contributed Capital, Investments, and Cash.

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Definitions:

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, characterized by redness, swelling, heat, and pain.

Edema

Swelling caused by excess fluid trapped in the body's tissues, often occurring in the arms, legs, or ankles.

Hemorrhage

Excessive or uncontrolled bleeding, which can occur internally within body cavities or externally through a natural opening or break in the skin.

Injured Tissue

Tissue that has been damaged due to injury or disease, leading to inflammation, pain, and often requiring regeneration or repair processes.