Which of the Following Occurs When a Shareholder Invests Cash

question 145

Multiple Choice

Which of the following occurs when a shareholder invests cash in a corporation in exchange for stock?

• A)Both liabilities and stockholders' equity are increased.
• B)Both assets and stockholders' equity are increased.
• C)One asset is increased and another asset is decreased.
• D)Both assets and liabilities are increased.

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Definitions:

Firms

Businesses or economic entities that engage in the production and sale of goods or services to consumers.

African-American Families

Families of African descent living in the United States, with histories and cultures that have significantly shaped American society.

White Families

Refers to households or family units identified as white based on racial or ethnic classification, often used in demographic and socio-economic analyses.

Population in Poverty

The portion of the community that lives below the poverty line, unable to afford basic human needs like clean water, nutrition, health care, education, clothing, and shelter.