If a Company Issues 1,000 Shares of $1 Par Value

question 92

Multiple Choice

If a company issues 1,000 shares of $1 par value common stock for $30 per share,what would be the effect on the accounting equation?

• A)Increase assets and increase liabilities.
• B)Increase assets and increase revenue.
• C)Increase assets and increase stockholders' equity.
• D)Increase assets and decrease stockholders' equity.

---

Definitions:

Economic Order Quantity

An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.

Variable Cost

Variable cost refers to expenses that change in proportion to the activity of a business, such as costs for raw materials or production that increase or decrease based on the volume of production.

Fixed Cost

Costs that do not change with the volume of production, such as rent, salaries, and insurance premiums.