Which of the Following Occurs When a Shareholder Invests Cash

question 11

Multiple Choice

Which of the following occurs when a shareholder invests cash in a company in exchange for shares?

• A)One asset is increased and another asset is decreased.
• B)Both assets and liabilities are increased.
• C)Both liabilities and shareholders' equity are increased.
• D)Both assets and shareholders' equity are increased.

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Definitions:

Working Through

A psychoanalytic process involving the repeated examination and exploration of problems, emotions, and past experiences to achieve insight and resolve internal conflicts.

Interpretation

In therapy, the act of a therapist explaining or providing insight into aspects of a client's thoughts, behaviors, or dreams to uncover underlying meanings.

Displacement

In psychology, a defense mechanism where an individual shifts emotional reactions from a real source of distress to a safer or more acceptable substitute.

Intense Reaction

A highly amplified emotional or physical response to a specific trigger or situation.