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:

Catabolic Reactions

Catabolic Reactions are metabolic processes that break down molecules into smaller units, releasing energy stored in chemical bonds.

Energy

The capacity to do work or produce heat; it exists in various forms such as kinetic, potential, thermal, electrical, chemical, nuclear, and mass energy.

Basal Metabolic Rate

The rate of energy expenditure by the body at rest to maintain vital functions.

Brightly Lit

Describes an environment or space that is well-illuminated with light, either natural or artificial.