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:

Target Area Size

The specified dimensions or area where a particular operation, such as welding or machining, must be performed.

Datum Identifying Letter

A label or indication in a technical drawing that references a specific reference point, axis, or plane used as a basis for measurements or to define the geometry of the part.

Datum-Target Symbol

A graphical symbol in technical drawings that designates a reference point, line, or area for measurement and manufacturing.

Datum Features

Reference points, lines, or surfaces on an object that serve as the basis for dimensional measurements and geometrical specifications in engineering drawings.