When Stock Is Exchanged for Non-Cash Assets

question 19

Multiple Choice

When stock is exchanged for non-cash assets:

• A)debit the asset for prior book value; credit Common Stock for cash received.
• B)debit assets for market value; credit Common Stock for par value and,if needed,Paid-in Capital in Excess of Par.
• C)debit assets for market value; credit Common Stock for market value.
• D)debit assets for par value; credit Common Stock for par value.

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in the production process.

Real GDP Per Person

An economic metric that measures the value of all goods and services produced within a country in a specified period, adjusted for inflation and divided by the population.

Inward-Oriented Policy

An economic policy strategy that emphasizes domestic industry protection and self-sufficiency over global trade.

Trade Restrictions

Measures imposed by governments to regulate or limit the exchange of goods and services across borders.