After the Completion of All Steps in the Issue of Shares

question 51

Multiple Choice

After the completion of all steps in the issue of shares, the company's statement of financial position will show which of the following changes?

• A) Assets increased, liabilities increased
• B) Assets decreased, equity increased
• C) Assets decreased, liabilities decreased
• D) Assets increased; equity increased

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Definitions:

Long-term Investments

Long-term investments are assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other securities.

Future Expansion

Planning and preparing for growth in business operations, often involving strategic investments in facilities, technology, or workforce.

Intangible Assets

Assets that lack physical substance but have value due to the rights and advantages they provide to the business, such as patents, copyrights, and trademarks.

Uncertain Benefits

Advantages or gains that are not guaranteed or clearly defined, often associated with investments or business ventures.