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:

Hysterectomy

A surgical procedure to remove a woman’s uterus, which may also involve removing the cervix, ovaries, and fallopian tubes depending on the type of hysterectomy.

Uterine Cancer

A type of cancer that begins in the uterus, the organ in women where fetal development occurs.

Postoperative Support

Care and assistance provided to a patient after undergoing surgery to ensure proper recovery and minimize complications.

Connective Tissue

A type of body tissue that supports, connects, or separates different types of tissues and organs in the body.