Falcon Crest Corporation Issues 100 Shares of No- Par Common

question 101

Multiple Choice

Falcon Crest Corporation issues 100 shares of no- par common stock for $10 per share. The stock has a stated value of $1 per share. This transaction will include a credit to Common Stock for:

• A)$100 and a credit to Retained Earnings for $900.
• B)$100 and a credit to Paid- in Capital for $900.
• C)$100 and a Gain on Issue of Common Stock for $900.
• D)$1,000.

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Definitions:

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Bertrand Model

An economic model of competition among firms that compete by setting prices simultaneously.

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.

Economic Profits

The financial gain achieved when revenues exceed both explicit and implicit costs.