Which of the Following Would Result When a Company Sells

question 93

Multiple Choice

Which of the following would result when a company sells additional shares of common stock for cash?

• A)A noncurrent liability and a financing cash flow are created.
• B)Common stock increases and a financing cash flow results.
• C)A noncurrent liability and an investing cash flow are created.
• D)Common stock increases and an investing cash flow results.

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Definitions:

Confidence Interval

A range of values, derived from the statistical analysis of data, that is likely to include the true population parameter with a certain level of confidence.

Sample

A subset of individuals or observations from a population used to estimate parameters or statistics of the whole population.

Mean

The average of a set of numbers, calculated by summing them up and dividing by the number of summands.

Standard Deviation

A measure of the amount of variability or dispersion of a set of values around the mean.