Jaycox Company Received $1,000 Cash from the Issue of Stock

question 128

Multiple Choice

Jaycox Company received $1,000 cash from the issue of stock on January 1,2012.During 2012 the Jaycox Company earned $3,500 of revenue on account.The company collected $2,400 cash from accounts receivable and paid $3,000 cash for operating expenses.Based on this information alone:

• A) total assets increased by $1,500.
• B) total assets decreased by $3,500.
• C) total assets increased by $2,400.
• D) total assets did not change.

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Definitions:

Frederic Bastiat

A French economist and writer known for his advocacy of free-market policies and his critique of protectionism in the 19th century.

European Union

A political and economic union of 27 European countries that are located primarily in Europe.

World Exports

This term relates to the total sum of goods and services that are sold and shipped by one country to others across the globe.

GDP

stands for Gross Domestic Product, a measure of a nation's total economic output and a key indicator of economic health.