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:

Sales Tax

A tax imposed by the government on the sale of goods and services.

Labor Market

The labor market is the marketplace where employers find workers and workers find jobs, dictated by supply and demand for labor.

Market Wage Rate

The prevailing rate of pay for a specific job in a given labor market.

Factor Demand Curve

Graphical representation showing the quantity of a factor of production demanded at different prices for that factor.