ABC Company Acquired $23,000 by Issuing Common Stock to Investors

question 111

Multiple Choice

ABC Company acquired $23,000 by issuing common stock to investors.Which of the following choices accurately reflects how this event would affect the company's financial statement?

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Normal Operations

Refers to the regular and routine activities of a business under usual conditions.

Long Lived

Assets or properties owned by a company that are expected to provide economic benefits or value over an extended period, often exceeding one year.

Tangible

Relating to or representing things that have physical form and substance; can be touched or felt.

Cost Basis

The original value of an asset for tax purposes, typically the purchase price, adjusted for stock splits, dividends, and return of capital distributions, used to calculate capital gains or losses upon sale.