ABC Company Deposited $20,000 in a Bank Account in Return

question 96

Multiple Choice

ABC Company deposited $20,000 in a bank account in return for issuing shares in the corporation.This transaction would affect which two financial statement elements?

• A) Assets and stockholders' equity
• B) Assets and liabilities
• C) Liabilities and stockholders' equity
• D) None of these

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Definitions:

State Government

The organization through which political authority is exercised at the state level, governed by a state constitution, and composed of executive, legislative, and judicial branches.

U.S.Sentencing Commission

An independent agency of the judicial branch of the U.S. federal government responsible for establishing sentencing policies and practices for the federal courts, including guidelines on the sentencing of convicted offenders.

Federal Sentencing Guidelines

Rules set out by the federal government to determine the appropriate sentence for individuals and organizations convicted of federal crimes.

Judicial Discretion

The authority given to judges to make decisions based on what they believe is fair and in accordance with the law, especially in areas not explicitly outlined by statute.