A Stockholder's Investment of Land and a Building into the Business

question 65

Multiple Choice

A stockholder's investment of land and a building into the business would include a debit to:

• A)Land and Building and a credit to Common Stock.
• B)Land and a credit to Building.
• C)Common Stock and a credit to Building.
• D)Building and a credit to Retained Earnings.

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Definitions:

Cerebral Cortex

The outer layer of the brain that is responsible for complex cognitive processes, including thought, memory, awareness, and consciousness.

Biological Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Low Base Rate Fallacy

The tendency to ignore the base rate (i.e., the prevalence of an event or characteristic within a given population) when making judgments of probabilities, leading to inaccurate assessments.

Rarely Exercised Option

An option or choice that is available but seldom used or selected by people.