Alma Corp Issues 1,000 Shares of $10 Par Common Stock at at $14

question 51

Multiple Choice

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credits are made to

• A) Common Stock, $14,000
• B) Common Stock, $10,000, and Paid-In Capital in Excess of Par-Common Stock, $4,000
• C) Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000
• D) Common Stock, $10,000, and Retained Earnings, $4,000

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Definitions:

SBU

Strategic Business Unit, a fully-functional unit of a business that has its own vision and direction, often with responsibility for its own profitability.

Dog

A domesticated carnivorous mammal that typically has a long snout, an acute sense of smell, non-retractable claws, and a barking, howling, or whining voice.

BCG

Refers to the Boston Consulting Group Matrix, a strategic planning tool that categorizes a company's business units or products into four categories (Stars, Cash Cows, Question Marks, and Dogs) based on market growth and market share.

SBU

Strategic Business Unit; a semi-autonomous component of a larger organization, often focused on a specific product line or market segment.