If a Person Starting a Business Had an Investment of a Building

question 38

Multiple Choice

If a person starting a business had an investment of a building, valued at $300,000 with an $180,000 outstanding mortgage and issued stock for the balance, the effect would be to:

• A)increase assets by $120,000.
• B)increase assets by $180,000.
• C)increase stockholders' equity by $120,000.
• D)increase stockholders' equity by $300,000.

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Definitions:

Dehydration

A condition that occurs when the body doesn't have enough water and other fluids to carry out its normal functions.

Prolonged Bed Rest

Extended periods of lying in bed for medical reasons, which may lead to complications.

Hypothermia

A medical emergency that occurs when your body loses heat faster than it can produce heat, causing a dangerously low body temperature.

Schizophrenia

A chronic mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.