Which of the Following Would Result When a Company Sells

question 93

Multiple Choice

Which of the following would result when a company sells additional shares of common stock for cash?

• A)A noncurrent liability and a financing cash flow are created.
• B)Common stock increases and a financing cash flow results.
• C)A noncurrent liability and an investing cash flow are created.
• D)Common stock increases and an investing cash flow results.

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Definitions:

Frustration-Aggression Principle

A psychological theory suggesting that frustration often leads to aggressive behavior, as aggression is a result of blocked, desired goals.

Evolutionary Psychology

A theoretical approach in psychology that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Deindividuation

A psychological state characterized by reduced self-awareness and anonymity that can lead to impulsive and deviant behavior.

Reward Theory

A psychological construct positing that behaviors are motivated by the desire for rewarding outcomes.