Consider the Following Transactions

question 8

Multiple Choice

Consider the following transactions:
(i) issued share capital for cash of $200 000
(ii) received $50 000 from accounts receivable
(iii) paid $30 000 to accounts payable
(iv) purchased new equipment for $160 000 on credit
(v) increased the long service provision by $5000.
Total assets increased by:

• A) $130 000
• B) $180 000
• C) $300 000
• D) $330 000.

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Definitions:

IFRS

International Financial Reporting Standards, which are international accounting standards for preparing and presenting financial statements.

U.S. GAAP

A framework of accounting standards, principles, and procedures that companies registered in the United States must follow to report their financial statements, ensuring accurate financial reporting and investor trust.

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.

Paid in Capital

Funds received by a company in exchange for its stock, representing the capital given by investors during common or preferred stock issuance.