On 1 November Yasmine Company Pty Ltd Issued 100 000

question 41

Multiple Choice

On 1 November Yasmine Company Pty Ltd issued 100 000 shares for $5 each. The correct entry to record this transaction is:

• A) DR Cash $500 000; CR Shareholder's equity $500 000.
• B) DR Cash $500 000; CR Share capital $500 000
• C) DR Cash $500 000; CR Share capital $500 000.
• D) DR Shareholder's equity $500 000; CR Cash $500 000

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Definitions:

Financial Position

A snapshot of the resources and obligations of a company or individual at a specific point in time, indicating the net worth or financial health.

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by and distributions to shareholders.

Net Working Capital

The difference between a firm's current assets and its current liabilities, indicating the short-term financial health and working capital efficiency of the business.

Total Assets Ratio

A financial metric that compares the value of a company's total assets to another relevant value, often used in financial analysis to gauge company size or efficiency.