Which of the Following Occurs When a Shareholder Invests Cash

question 49

Multiple Choice

Which of the following occurs when a shareholder invests cash in a company in exchange for shares?

• A)Both assets and liabilities are increased.
• B)Both assets and shareholders' equity are increased.
• C)One asset is increased and another asset is decreased.
• D)Both liabilities and shareholders' equity are increased.

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Prejudice

Preconceived opinion or bias, often negative, towards people, groups, or subjects, based on stereotypes rather than individual merit.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.