Issuance of Common Stock for Cash Affects Which Basic Element

question 69

Multiple Choice

Issuance of common stock for cash affects which basic element of financial statements?

• A) Revenues.
• B) Losses.
• C) Liabilities.
• D) Equity.

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Definitions:

Sugar Act

A law passed by the British Parliament in 1764 aimed at increasing revenue from the colonies by imposing a tax on sugar and molasses imported into North America.

Slogan

A short, memorable phrase used to encapsulate the essence of a product, campaign, or idea.

Contract Theory

A theory in legal and political philosophy regarding how contracts and agreements form the foundations of societies and governments, focusing on mutual consent and obligations.

Thomas Hobbes

A 17th-century English philosopher known for his work in political philosophy, particularly his social contract theory as outlined in his book "Leviathan," emphasizing a powerful sovereign for societal peace.