If a Company Issues 25,000 Ordinary Shares Which Are Sold

question 3

Multiple Choice

If a company issues 25,000 ordinary shares which are sold at $4 per share, the effect on the accounting equation is:

• A)increase cash $100,000; decrease in shareholders' equity $80,000.
• B)increase cash $100,000; increase in liabilities $80,000.
• C)increase cash $100,000; increase in shareholders' equity $100,000.
• D)none of the above.

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Definitions:

Economic Value

The worth of a good or service determined by the market forces of demand and supply, or the utility it provides to individuals or society.

Centralized Selection

A recruitment approach where hiring decisions and processes are managed from a central location or department within an organization to ensure consistency and efficiency.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics like race, gender, age, or religion.

Online Assessment

Evaluation or testing conducted over the internet to measure skills, knowledge, aptitudes, or qualifications.