AMB Company's Tabular Analysis at the Beginning of October Consisted

question 119

Multiple Choice

AMB Company's tabular analysis at the beginning of October consisted of the following balances: During October the company issued additional shares of stock for proceeds of $2000.How would this transaction be recorded in the tabular analysis?

• A)Decrease Cash by $2000 and increase Revenue by $2000.
• B)Increase Accounts Receivable by $2000 and increase Revenue by $2000.
• C)Increase Cash by $2000 and decrease Common Stock by $2000.
• D)Increase Cash by $2000 and increase Common Stock by $2000.

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Definitions:

Chapter 7 Petition

A legal document filed to initiate bankruptcy proceedings under Chapter 7, leading to the liquidation of a debtor's non-exempt assets to pay creditors.

Homestead Exemption

A legal provision that protects a portion of a homeowner's value in their primary residence from creditors and property taxes.

Liens

Legal claims or rights against property or assets to secure the payment of a debt or obligation.

Homestead Exemption

A legal provision that protects a portion of a homeowner's value from property taxes or creditors.