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

question 122

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.

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Definitions:

Input Prices

The costs associated with purchasing the raw materials and resources required to produce a good or service.

Number of Sellers

Refers to the total count of providers or suppliers offering a product or service in a market.

Suppliers' Expectations

The anticipations of future market conditions by those who provide goods or services, influencing their current supply decisions.

Advancement in Technology

Improvements and innovations in technology that enhance productivity, efficiency, and often lead to the creation of new products or services.