A Company Received Cash in Exchange for Issuing Stock

question 161

Multiple Choice

A company received cash in exchange for issuing stock.This transaction increased assets and:

• A)increased expenses.
• B)increased revenues.
• C)increased liabilities.
• D)increased stockholders' equity.

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Definitions:

Marbury V. Madison

A landmark U.S. Supreme Court case in 1803 that established the principle of judicial review, enabling courts to strike down laws deemed unconstitutional.

Judicial Review

The power of courts to assess if laws and actions of government adhere to the constitution.

XYZ Affair

A diplomatic incident between France and the United States in 1797-1798, which led to an undeclared naval war, involving controversial negotiations and demands for bribes.

American Diplomats

Officials representing the United States in foreign countries, involved in negotiating treaties, and dealing with issues related to national security and international relations.