When a Stockholder Contributes Cash to a Corporation in Exchange

question 168

Multiple Choice

When a stockholder contributes cash to a corporation in exchange for stock,________.

• A)liabilities and stockholders' equity are increased
• B)assets and stockholders' equity are increased
• C)one asset is increased and another asset is decreased
• D)assets and liabilities are increased

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Definitions:

Bronchi

The main passageways directly attached to the lungs that allow the passage of air in and out of the lungs.

Alveoli

Tiny air sacs within the lungs where gas exchange between the air and blood occurs.

Dalton's Law

The principle that the total pressure exerted by a mixture of gases is equal to the sum of the pressures that each would exert if it were present alone.

Partial Pressures

The pressure that a single gas in a mixture of gases would exert if it alone occupied the entire volume of the mixture.