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:

EDI

Electronic Data Interchange, the structured transmission of data between organizations by electronic means.

Cycle Time

The time period required to complete one cycle of an operation or to produce a unit of product, often used as a measure of efficiency in manufacturing and business processes.

Productivity

The efficiency at which individuals, businesses, or systems produce goods or provide services, often measured by output per unit of input.

Bullwhip Effect

A phenomenon in supply chain management when small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.