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:

Mobilizes

To prepare and organize (groups, resources, etc.) for a purpose or action, especially in a context of urgency or conflict.

Somatic Nervous System

A component of the peripheral nervous system associated with the voluntary control of body movements through the action of skeletal muscles.

Spinal Reflexes

Spinal reflexes are automatic, involuntary movements or actions of the body that are initiated in the spinal cord without the involvement of the brain, such as the knee-jerk reaction.

Automatic

Processes or actions that are performed without conscious thought or intention, often as a result of learning or habituation.