When a Company Issues Common Stock for Cash,what Is the Effect

question 150

Multiple Choice

When a company issues common stock for cash,what is the effect on the accounting equation for the company?

• A)Assets increase and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Assets decrease and liabilities decrease.
• D)Liabilities decrease and stockholders' equity increases.

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Definitions:

Input Connector

A device or port where signal or data enters an electronic system or component.

Output Pins

The terminals or connectors on a device, like a microcontroller or integrated circuit, that provide electrical output to other parts of a system.

Input Pins

Physical or virtual connectors on a device that receive signals or data from external sources.

BAND Function Block

A functional block in programming or digital logic that performs a bitwise AND operation on its input signals.