Chao Xu Starts a Consulting Business Called Networkers

question 96

Multiple Choice

Chao Xu starts a consulting business called Networkers.Xu invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock.How would Networkers record this transaction?

• A)Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue increases by $15,000.
• B)Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue decreases by $15,000.
• C)Cash increases by $10,000,Equipment increases by $5,000,and Common Stock decreases by $15,000.
• D)Cash increases by $10,000,Equipment increases by $5,000,and Common Stock increases by $15,000.
• E)Cash increases by $10,000,Equipment decreases by $5,000,and Common Stock increases by $5,000.

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Definitions:

Strategy Implementation

The execution of plans and strategies to achieve goals and objectives, typically involving the use of resources and coordinating efforts among team members.

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Long-Range Planning

The process of setting goals and determining strategies for achieving those goals over a long-term period.

Core Competencies

The unique strengths or strategic advantages of an organization, stemming from the combination of its resources and capabilities, that differentiate it from competitors.