A Company Sells 1 Million Shares of Common Stock with No

question 15

Multiple Choice

A company sells 1 million shares of common stock with no par value for $15 a share.In recording the transaction,it would debit:

• A)Cash and credit Additional Paid-in Capital for $15 million.
• B)Cash and credit Common Stock for $15 million.
• C)Common Stock and credit Cash for $15 million.
• D)Common Stock and credit Additional Paid-in Capital for $15 million.

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Definitions:

Ethical Lapses

Instances of failing to act in an ethical manner, often resulting in behavior that is morally or legally wrong.

Confidential Information

Sensitive data that is meant to be kept secret and is protected due to its potential impact on privacy, security, or competitive advantage.

Secondary Research

The process of gathering existing data from previously published sources to analyze information.

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, and symbols.