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

question 33

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:

Cutaneous Absorption

The process by which the skin absorbs substances, including creams, lotions, or medications applied topically.

Absorption

The process by which substances are taken up or assimilated into the body or into cells.

Disease Transmission

The process by which infectious diseases spread from one individual to another, through direct contact, vectors, or environmental means.

Inhalation

The act of breathing in; the intake of air or other substances into the lungs.