Which of the Following Entries Records the Purchase of Common

question 181

Multiple Choice

Which of the following entries records the purchase of common stock by stockholders?

• A)debit Common Stock; credit Accounts Receivable
• B)debit Cash; credit Common Stock
• C)debit Dividends; credit Cash
• D)debit Dividends; credit Common Stock

---

Definitions:

Coherent Strategy

A strategic approach that is logical, consistent, and connected in a way that all parts support each other towards achieving business goals.

Operational Focus

Concentration on the day-to-day tasks and management of business operations to optimize efficiency and meet short-term objectives.

Strategic Focus

Concentrating organization's efforts and resources on a specific strategic direction to achieve competitive advantage or goals.

Strategic Posture

An organization's stance or approach in planning and decision-making processes to shape its long-term direction and the way it interacts with its environment.