Which of the Following Reflects the Impact of a Transaction

question 3

Multiple Choice

Which of the following reflects the impact of a transaction where $200,000 cash was invested by stockholders in exchange for stock?

• A)Assets and liabilities each increased $200,000.
• B)Assets and revenues each increased $200,000.
• C)Stockholders' equity and revenues each increased $200,000.
• D)Stockholders' equity and assets each increased $200,000.

---

Definitions:

Per-hour Wage

The amount of money paid to an employee for each hour of work.

Payroll Tax

Financial obligations placed on employers and workers, regularly computed based on a percentage of the compensation paid to workers.

Per-hour Wage

Compensation paid to an employee based on the number of hours worked.

Payroll Tax

Dues extracted from employers or laborers, usually as a percentage of the salary expenditures.