If a Company Issues 1,000 Shares of $1 Par Value

question 49

Multiple Choice

If a company issues 1,000 shares of $1 par value common stock for $20 per share,what would be the effect on the accounting equation?

• A)Increase assets and increase liabilities.
• B)Increase assets and increase revenue.
• C)Increase assets and increase stockholders' equity.

---

Definitions:

Long Lead-in

An extensive introduction or preamble to a document, presentation, or topic that prepares the audience for the main content.

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and without the use of spoken language.

Eye Contact

Eye contact involves looking directly into another person's eyes to convey attention, confidence, and engagement in face-to-face communication.

Background Sounds

Ambient noises present in the environment where an event takes place or a recording is made, which are not the focus of the intended audience.