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:

PTO

Stands for Parent-Teacher Organization, a formal organization composed of parents, teachers, and staff that is intended to facilitate parental participation in a school.

Educators

Professionals who impart knowledge and skills to students, facilitating learning and intellectual development.

Mandated Standards

Officially required or prescribed benchmarks or criteria that must be met by organizations, services, products, or individuals.

Cultures

The customs, ideas, and social behavior of particular people or societies.