When Cash Is Received from a Stockholder in Exchange for Common

question 188

Multiple Choice

When cash is received from a stockholder in exchange for common stock,the transaction is recorded by debiting Cash and crediting a(n) :

• A)Asset account.
• B)Equity account.
• C)Revenue account.
• D)Expense account.
• E)Liability account.

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Definitions:

Simplify

To reduce a complex mathematical expression or equation to a simpler form by performing operations and combining like terms.

Expression

In mathematics, an arrangement of numbers, symbols, and operators (such as + and ×) that represents a quantity or procedure. Expressions do not have equality signs.

Simplify

The process of making an expression or equation easier to understand or solve by reducing complexity.

Expression

A combination of numbers, variables, and operations representing a particular value, without an equality sign unlike an equation.